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CRGNV sale negotiations continue – CRG

16th July 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Central Rand Gold (CRG) has still not reached an agreement with potential Chinese investors Huili Resources and Hiria Group, regarding the sale of its CRG Netherlands Antilles (CRGNV) subsidiary, despite having previously extended the completion date to July 15.

The Johannesburg-based miner on Thursday said it had worked closely with both Huili and Hiria to finalise their respective due diligence processes. It had also worked closely with Hiria over the past four weeks to resolve both technical due diligence and commercial items.

“[We are] impressed by the level of engagement from both Hiria and its financial partner Hangzhou Everbright Private Equity Investment Management [and are] encouraged by the progress of discussion. Negotiations are now substantively focused on commercial and structural issues,” it said in a statement.

Further, the company said it was exploring a number of structural alternatives with Hiria and Hangzhou Everbright which ranged from the acquisition of CRGNV to a strategic investment into the company.

Discussions would continue with Hiria until an outcome was reached.

The company also worked closely with Huili, focusing on various technical due diligence items, largely focused on the future dewatering of the Central basin below 225 m below surface and surrounding surface and openpit resource opportunities.

Huili’s right of first purchase remained in place.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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