ON-listed gold miner Central Rand Gold said yesterday it would take an appeal against the cancellation of its mining rights to the high court in Pretoria.
Shares in the company recovered slightly from sharp losses in Tuesday’s trading yesterday, after it said it would apply for interdictory relief, which would allow it to continue operations while any decision over the licence is pending.
The South African ministry of mineral resources revoked Central Rand Gold’s mining licence on Tuesday, meaning it had to immediately suspend its mining operations near Johannesburg.
The ministry said Central Rand Gold had violated two conditions of its permit, linked to the country’s mining work programme and social labour plan.
“The company believes that it has done all that it can to satisfy the department’s requirements with the financial resources at its disposal and considering the considerable mining obstacles and operational challenges it has faced, several of which have been beyond its control,” said Central Rand Gold yesterday.
AIM-listed shares in the company jumped to 0.27p yesterday before closing flat at 0.22p. The firm’s South African shares also closed flat.