Central Rand Gold Limited Puno Funding Call Court Case Outcome (1082I)
June 14 2017 - 11:00AM
UK Regulatory
TIDMCRND
RNS Number : 1082I
Central Rand Gold Limited
14 June 2017
Central Rand Gold Limited
(Incorporated as a company with limited liability
under the laws of Guernsey,
Company Number 45108)
(Incorporated as an external company with limited
liability under the laws of South Africa,
Registration number 2007/019223/10)
ISIN: GG00B92NXM24
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the "Company")
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Puno Funding Call Court Case Outcome
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-- Central Rand Gold wins dispute with Puno regarding funding call.
-- The Company's subsidiaries, CRGSA and CRGNV, awarded
ZAR72,326,573 (approximately US$924,791).
-- The Company's subsidiaries, CRGSA and CRGNV, awarded all
legal costs relating to the application, which is still to be
determined as the Courts still need to tax the accounts.
Shareholders are referred to the announcement dated 28 November
2011 wherein a dispute relating to alleged procedural breaches of
the Central Rand Gold South Africa Proprietary Limited ("CRGSA")
Shareholders Agreement ("Shareholders Agreement"), entered into
between Central Rand Gold Netherlands Antilles ("CRGNV") and its
current Black Economic Empowerment partner, Puno Gold Investments
Proprietary Limited ("Puno") was detailed. Shareholders are advised
that on 13 June 2017, the High Court of South Africa, (Gauteng
Division, Pretoria) ("the Court") handed down judgment under case
number: 45200/2011, being the matter initiated by the Company,
CRGNV and CRGSA against Puno on 25 November 2011.
This matter centred around the validity and enforceability of a
funding call, being the request for funds from shareholders of
CRGSA for operational use, made by CRGSA and CRGNV on Puno under
the Shareholders Agreement between the parties relating to CRGSA.
This funding call was issued on 17 September 2008 in terms of
clause 11 of the Shareholders Agreement.
The judgment delivered was in favour of the Company, CRGNV and
CRGSA. The Court upheld the views of these entities and rejected
the defences proffered by Puno. This judgment has now definitively
and positively pronounced on the validity and enforceability of the
funding call, and found that such funding call was made in
accordance with the overarching law and the Shareholders
Agreement.
Although the consequent call option, being the call for dilution
of the shareholding due to non-payment of outstanding loans, was
not positively declared upon for other reasons, the Court provided
an Order in favour of the Company, CRGNV and CRGSA as follows:
"1. [That] the funding call directed by the first and second
applicant (CRGSA and CRGNV) to the respondent (Puno) on or about 17
September 2008, for payment by the respondent for ZAR72 326 573.47
is declared valid and enforceable.
2. The respondent is ordered to pay the costs of the
application.
3. The counter-application is dismissed with costs.
4. Both cost orders include the costs of senior and junior
counsel"
Puno retains interest in CRGSA but owes CRGSA and CRGNV
ZAR72,326,573 (approximately US$924,791, being the original loan
amount plus compound interest).
The Company is considering the options open to it in the light
of the Order in its favour against Puno.
For further information, please contact:
Central Rand Gold +27 (0) 87 310 4400
Lola Trollip
ZAI Corporate Finance Ltd - Nominated Adviser & Broker +44
(0) 20 7060 2220
John Treacy
Brandon Hill Capital Limited - Broker +44 (0) 20 3463 5000
Jonathan Evans / Wei Jiao
Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
Johannesburg
14 June 2017
The information communicated in this announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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