JOHANNESBURG (miningweekly.com) – Johannesburg-based gold miner Central Rand Gold (CRG) is considering potentially selling its operating assets, among other possible options, as it tries to secure financing solutions amid an “extremely challenging” cash position.

The company’s announcement to shareholders on Wednesday was ahead of a court hearing, set for May 19, to decide whether or not a settlement agreement with IPROP would be ratified and whether any pecuniary debts are owed.

CRG South Africa (CRGSA), in January 2005, acquired the shareholding of Ferreira Estate Investment Company (FEIC), which was the holder of CRG’s current mining right, from IPROP and its subsidiary Industrial Zone (Inzo). At the time, FEIC also required the use of certain surface areas owned by Inzo, resulting in CRGSA entering into lease agreements with Inzo.

IPROP contends a dispute arose between the parties about the lease agreements in 2009, which it says culminated in a settlement agreement entered into by the parties in November 2009.

“As part of the settlement terms, and apart from any payment entitlements, IPROP was entitled to have the [settlement] agreement made an order of court. IPROP does not immediately allege a pecuniary debt owed in
terms of the agreement; however, it does appear that a dispute in relation to the conclusion of future leases emanating from the agreement subsists.

“The present application seeks to have the agreement ratified by court order, the effect of which would be to make the terms of the agreement enforceable and to the extent that any pecuniary debts remain unpaid, making those immediately recoverable,” CRG explained on Wednesday.

LABOUR AGREEMENT
Meanwhile, the dual-listed miner on Wednesday also said it had reached an agreement with union representatives to cease an 11-day strike by employees, who have now returned to work.

CRG has agreed that a bonus payment in the form of a thirteenth cheque will be paid in December, equivalent to 50% of each employee’s basic pay.