Central Rand Gold completes tolling agreement

Central Rand Gold announced on Friday that it has completed and executed the definitive documents which will govern its Joint Venture Tolling Agreement with the unnamed third party supplier of gold bearing ore.

The AIM-traded firm also announced that it has received multiple deliveries of gold bearing ore from the supplier which is presently being stockpiled on site at the company's metallurgical plant.

It said the supplier will continue to deliver gold bearing ore over the coming days, before processing of the material begins later this month.

“The company is presently conducting metallurgical testing to ensure optimum recoveries of gold are achieved from the material,” Central Rand Gold’s board said in a statement.

The company also said it was continuing to advance due diligence and negotiations with additional third parties regarding a variety of joint venture alternatives.

“Given the commencement of the tolling venture, the joint venture opportunities will likely require the nameplate capacity of the company's existing metallurgical plant to be increased,” the board said.

“In this regard, the Company is working closely with Zhejiang Golden Machinery Plant to conduct various testwork and due diligence work streams regarding the opportunities and the potential expansion of the existing metallurgical plant.”

Central Rand Gold said it expects to be in a position to update shareholders regarding the joint venture opportunities in the near future.