JOHANNESBURG (miningweekly.com) – Aim-listed Central African Gold (CAG) has entered into new loan agreements with its two largest shareholders ECP Africa Fund (ECP) and HBD Zim Investments (HBD) for a combined amount of about $1-million.

The gold-miner noted that the loans would be used to accelerate investment at its Zimbabwean operations, as well as to support its working capital requirements.

ECP had agreed to loan CAG about $705 000, while the HBD loan amounted to about $303 000. These were repayable on April 29, 2011.

“We feel that the [loan agreements] demonstrate the continuing support of our major shareholders, their belief in the value of CAG's core assets and their desire to assist CAG in fully developing its operations in Zimbabwe, to the benefit of all shareholders,” CEO Roy Pitchford said.

CAG was also in the process of agreeing a new loan agreement with Investec Asset Managers for a further loan amount, the company added.

CAG acquired a number of operations and exploration projects in Zimbabwe, when it bought an 87,4% stake in Falcon Gold and a 100% interest in Olympus Gold Mines in early 2007.