Central Rand Gold enters into MOU with Beijing Ankong

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Gold exploration group, Central Rand Gold has entered into a Memorandum of Understanding (MOU) with Beijing Ankong Investments.

This is further to its announcement on 11 November 2014 wherein shareholders were advised that Central Rand Gold had entered into a non-binding Memorandum of Understanding with Hiria Group Company Limited.

“The Ankong MOU, which is substantively consistent with the terms and conditions of the Hiria MOU, also contemplates the potential disposal of 100 per cent of the shares held by Central Rand Gold in its wholly-owned subsidiary, Central Rand Gold (Netherlands Antilles) N.V. to Ankong,” it said.

“[This is] for a cash consideration of 148 million US dollars. The subsidiary owns the assets of the Central Rand Gold Group.”

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According to the company, the Ankong MOU is subject to a number of conditions including the mutual completion of due diligence by both Central Rand Gold and Ankong and Central Rand Gold obtaining all necessary regulatory and exchange approvals for the potential sale of the subsidiary.

“Consistent with the terms of the Hiria MOU, [DATA CRD:Central Rand Gold] and Ankong have agreed that the finalisation of all required due diligence and the execution of a formal share sale agreement should be completed by 31 March 2015,” it said.

“The company is in the process of establishing a virtual data room that will be made equally available to Hiria and Ankong in order that both interested parties are treated equitably and have access to identical information. The MOUs with Hiria and Ankong have both been entered into on a non-exclusive basis.”

Central Rand Gold added that the Board cautions that at this time there can be no certainty that the discussions with Hiria or with Ankong will lead to a formal share sale agreement being entered into.

“A further announcement relating to the transaction will be made in due course,” the Johannesburg-based company said.

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Ankong is a subsidiary of Phoenix Tree, a Hong Kong based financial investor which has a broad mandate to invest in strategic opportunities across various industries which will provide an opportunity to unlock value though the introduction of Chinese funding and technical expertise.