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CAG enters facility agreement

The facility agreement will provide CAG, a AIM quoted gold mining company with a portfolio of production, development and exploration assets primarily in Zimbabwe, with up to $2 million to support its Zimbabwean mining operations. CAG operates through two subsidiaries, Falcon Gold Zimbabwe Limited, 84.7 percent owned, and Olympus Gold Mines Limited, 100 percent owned.
 Gold
 
 
The facility agreement will provide CAG, a AIM quoted gold mining company with a portfolio of production, development and exploration assets primarily in Zimbabwe, with up to $2 million to support its Zimbabwean mining operations.

CAG operates through two subsidiaries, Falcon Gold Zimbabwe Limited, 84.7 percent owned, and Olympus Gold Mines Limited, 100 percent owned.

Through these subsidiaries, CAG has four main gold mines, the Dalny, Old Nic, Golden Quarry and Camperdown mines, which are located in the highly prospective Kadoma, Shurugwi and Bulawayo gold regions in Zimbabwe.

The funds made available under the terms of the agreement will be made available to both Falcon Gold Zimbabwe Limited and Olympus Gold Mines Limited to support both subsidiaries’ ongoing operational and working capital requirements.

The agreement does not have a maturity date and is repayable on demand.

As NDM is a substantial shareholder in CAG, the agreement is classified as a related party transaction in accordance with the AIM Rules.

Having consulted with the company's nominated adviser, Strand Hanson Limited, the independent director, Roy Pitchford, considers the terms of the agreement to be fair and reasonable insofar as the company's shareholders are concerned.

In providing its advice, Strand Hanson has taken into account the independent director’s commercial assessments.

Edited by Ellie Duncan

Source: www.centralafricangold.com



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