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Central Rand Gold needs US$20M to survive

Cash-strapped Central Rand Gold Ltd. needs at least US$20 million to continue mining operations and remain listed.

The company said Oct. 5 that its "overall financial position is negative" and it is looking for "urgent financing options."

Central Rand it may be forced to sell its stake in subsidiary Central Rand Gold (Netherlands Antilles) NV if it is unable to secure sufficient financing, although it said, "The directors consider that this is very unlikely to be forthcoming in the near future or at all." Central Rand needs the alternative financing "in the very near future."

The company has debt commitments to Redstone Capital Ltd. and the Wang family totaling US$9.8 million in aggregate, which could be called at any time.

Trade and other creditors are owed another US$7.8 million.

In July, Puno Gold Investment Pty. Ltd. withdrew an application to wind up Central Rand unit Central Rand Gold South Africa Pty. Ltd.

The company noted that while the operations of Central Rand Gold South Africa have stabilized, it still needs to improve its working capital position.