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CRG strengthens balance sheet with £200 000 capital raise

19th June 2015

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Dual-listed Central Rand Gold (CRG) has raised £200 000 to strengthen its balance sheet and to provide working capital to enable it to continue with surface mining operations, as well as planned plant upgrades and efficiency process improvements.

CRG raised the funds through the issue of two-million shares at 10p apiece.

The proceeds would also be used to repay trade creditor balances relating to the closure of the company’s underground mining operations and to complete the disposal of subsidiary CRG Netherlands Antilles.

CRG reported earlier this week that it had extended the targeted completion date for the sale of the subsidiary to July 15, to allow China-based companies Huili Resources and Hiria Group to complete the final phase of their respective internal processes.

Both companies had previously entered into nonbinding memoranda of understanding to potentially acquire the CRG Netherlands Antilles for $150-million.

CRG's share price on the JSE rose by 15.38% on Friday morning, while its share price on the LSE was trading 17.9% higher than Thursday's close.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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