Central Rand Gold updates on loan agreement, workers' strike

Shares in Johannesburg-based miner Central Rand Gold rose almost 5% after updating on its loan agreement with Jia Bang Wang, and also confirming a strike by employees.

Central Rand Gold said -- further to its November announcement about the loan agreement -- it had received a further tranche of $250,000.

"The company is currently working with Mr Wang to assist with the release of the balance of the loan monies," it said in a statement.

Central Rand Gold's board was mindful of the company's cash position, which had been improved by the delivery of this tranche of the loan, and would continue to exercise prudence in its expenditure.

"The company will update the market on progress of the shipping, instalment and commissioning of the Concentrator Circuit presently and will provide a further operational update in the coming days," it said.

Meanwhile, the companys said the negotiation of annual wage increases had ended in a dead lock, and the employees had embarked on industrial action in the form of a strike.

"The Company and Union Officials have met at the CCMA to resolve issues. To date, 10 May 2017, the Company has lost 5 days' production, as a direct result of the strike," it said.

"On 9 May 2017, the picketing rules have been signed at the CCMA, thus allowing non-striking workers to return to work. The operation will be run with skeleton staff in the interim."

At 11:17 BST, shares in AIM-quoted Central Rand Gold were up 4.88% to 0.43p each.