CRG receives $250 000 from Chinese investor

JOHANNESBURG (miningweekly.com) – Central Rand Gold (CRG) has received a further $250 000 tranche from its investor Jia Bang Wang.

The tranche forms part of a $1-million loan agreement the dual-listed miner signed in January, which was said to provide the company with sufficient working capital for the immediate future and for the procurement, shipping, installation and commissioning of a concentrator circuit.

The loan was meant to have been provided in two tranches, with the first tranche of $500 000 having been received by the company and a further $500 000 due by March 31.

In April, CRG raised concerns about the payment, which had been delayed, noting that it could impede CRG’s cash position.

“Our cash position still remains challenging. We have about R6.9-million at bank, near-term receivables of R6.1-million and near term liabilities of R9.9-million, including an amount payable for the concentrator circuit which falls due on delivery,” CRG said in a statement on Monday.

Income generated from gold produced and tolling fees has been used to pay down outstanding creditors, to ensure that the payment of historical debtors.

While CRG believes that its operations are stable, with a recent strike by employees now fully resolved, its directors are still considering a number of solutions to ensure the company meets its financial obligations, including the possible disposal of its operating assets.