JOHANNESBURG (miningweekly.com) – Aim- and AltX-listed Central Rand Gold (CRG) will need a cash injection of at least $20-million to remain a listed, operational mining group.
The group has, in recent months, warned of its negative financial position.
CRG has $9.8-million in debt commitments to Redstone Capital and the Wang family, which could be called at any time. The company and its subsidiaries also have trade and other creditors amounting to a further $7.8-million in aggregate.
“While CRG South Africa’s operations have stabilised operationally, the financial and operational positions remain fragile. There is a very thin working capital position at the operating company level with a negative position within the company,” CRG said on Thursday.
It added that the directors believed a $20-million cash injection was unlikely to be forthcoming in the near future or at all.
Accordingly, the directors are actively pursuing options which would involve retaining its listings but which will require the disposal of its interests in its immediate subsidiary company Central Rand Gold Netherlands Antilles, unless it is able to secure sufficient alternative finance at the required level in the near future.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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