CAN Central A.G.

 

TIDMCAN 
 
RNS Number : 0535H 
Central African Gold PLC 
12 February 2010 
 

 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 
12 February 2010 
                Central African Gold Plc ('CAG' or 'the Company') 
                              New Loan Agreements 
 
Central African Gold Plc, the AIM quoted gold mining and exploration company, 
announces that it has entered into new loan agreements with its two largest 
shareholders, ECP Africa Fund II PCC ('ECP') and HBD Zim Investments Limited 
('HBD') ( 'NLAs') in an aggregate amount of circa US$1 million (approximately 
GBP690,000).  ECP and HBD together hold 78.2 per cent. of the issued share 
capital of the Company. 
The NLAs have been subscribed for on the following basis: 
ECP     US$705,070.17 (GBP450,539.84) 
HBD    US$302,732.48 (GBP193,446.05) 
The Company is in the process of agreeing a new loan agreement with Investec 
Asset Management (Pty) Limited ('IAM') under the terms of which IAM will loan a 
further sum to the Company. A further announcement will be made in due course. 
The Board confirms that funds received under the NLAs will be used to accelerate 
investment in CAG's Zimbabwean operations and support the Company's general 
working capital requirements.  The Company is continuing to seek debt finance 
from a number of sources to support further CAG's working capital requirements. 
Accordingly, a further announcement on the progress of the debt finance process 
will be made in due course. 
The NLAs carry interest at 10 per cent. per annum, compounded monthly in 
arrears.  The full amount is repayable on the maturity date, 29 April 2011, or 
upon ECP, IAM and HBD and/or their Associates (as defined in the section 1152 of 
the Companies Act 2006) ceasing to hold, directly or indirectly, more than 50 
per cent. in aggregate of the issued share capital of the Company.  There is no 
penalty for early repayment of the loans. 
As ECP and HBD are substantial shareholders in the Company, the NLAs are 
classified as related party transactions in accordance with the AIM Rules. 
Accordingly, the independent directors, being Roy Pitchford and Craig Campbell, 
having consulted with Strand Hanson Limited, the Company's nominated adviser, 
consider the terms of the NLAs to be fair and reasonable insofar as the 
Company's shareholders are concerned.  In providing its advice, Strand Hanson 
Limited has taken into account the independent directors' commercial 
assessments. 
Roy Pitchford, CAG's Chief Executive Officer and Acting Chairman, said, "We feel 
that the NLAs demonstrate the continuing support of our major shareholders, 
their belief in the value of CAG's core assets and their desire to assist CAG in 
fully developing its operations in Zimbabwe, to the benefit of all 
shareholders." 
                                  * * ENDS * * 
 
 
For further information please visit www.centralafricangold.com or contact: 
 
+-------------+------------------------+---------------------+ 
| Roy         | Central African Gold   | Tel: +44(0)77 9390  | 
| Pitchford / | Plc                    | 9985                | 
| Craig       |                        | Tel: +27(0)11 317   | 
| Campbell    |                        | 3654                | 
|             |                        |                     | 
+-------------+------------------------+---------------------+ 
| Stuart      | Strand Hanson Limited  | Tel: +44(0)20 7409  | 
| Faulkner /  |                        | 3494                | 
| James       |                        |                     | 
| Spinney     |                        |                     | 
|             |                        |                     | 
+-------------+------------------------+---------------------+ 
| Hugo de     | St Brides Media and    | Tel: +44(0)20 7236  | 
| Salis /     | Finance Ltd            | 1177                | 
| Felicity    |                        |                     | 
| Edwards     |                        |                     | 
+-------------+------------------------+---------------------+ 
 
Notes to Editors 
Central African Gold Plc is an established gold mining company with a portfolio 
of production and exploration assets in Africa.  The Company has two 
subsidiaries in Zimbabwe: Falcon Gold Zimbabwe Limited (84.7 per cent. owned) 
and Olympus Gold Mines Limited (100 per cent. owned); and a subsidiary in 
southern Botswana with a licence covering 430.3km² of the extension of the 
Kraaipan greenstone belt from South Africa. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCEAAAFFLPEEAF 
 

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