Last checked at 9 Apr 2020 16:36
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Execution of New Loan Agreement
Update on COVID 19
China Nonferrous Gold Limited 中国有色黄金有限公司 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to provide the following update:
Banking Facility from China Construction Bank （Asia）Corporation Limited
The Company has today executed an agreement with China Construction Bank (Asia) Corporation Limited (“CCBC”) for a loan facility of up to USD$30 million (the “CCBC Loan”). The CCBC Loan facility is for a maximum of six months from the date the conditions precedent are fulfilled and repayable 12 months from first drawdown. The terms of the CCBC Loan includes an annual interest rate at 1.15% plus 3 month LIBOR and is governed by the law of Hong Kong.
The facility will be guaranteed by 3 standby letters of credit (“SBLC”) to CCBC from China Nonferrous Metal Mining (Group) Co.,Ltd (“CNMC”), with each carrying a value of not less than USD$10 million, for the aggregate amount of USD$30 million, such guarantee also expires 12 months from the date of first drawdown (the “Guarantee”). The total amount of the Loans shall not exceed 97% of the total value of the Guarantee at any time. An arrangement fee of 1.0% is payable per annum to CCBC but no fee is payable to CNMC.
Approximately US$15m of the CCBC Loan is expected to be drawn down shortly and will be used for general working capital of the Pakrut gold mine.
Related Party Transaction
The Company’s major shareholder is China Nonferrous Metals International Mining Company Limited (“CNMIM”), which holds 38% of the issued share capital of the Company and CNMC is the major shareholder of CNMIM. Accordingly the granting of the Guarantee by CNMC is a related party transaction under the AIM Rules.
The directors of the Company with the exception of Liang Boyi, Yu Lixian who are directors of CNMIM and Feng Delin who is CFO of CNMIM consider that having consulted with WH Ireland, the Company’s nominated adviser, the terms of the Guarantee are fair and reasonable insofar as the Company’s shareholders are concerned.
Summary of Current Financial Position
In addition to the loans outlined above the Company has further loans of approximately US$240million outstanding.
COVID 19 Update
The Company confirms that they have taken appropriate steps to ensure that staff at protected at site, but that to date operations at the minesite at Pakrut continue as normal, despite COVID 19. Further updates will be provided if the situation changes.
For further information please visit the Company’s website (www.cnfgold.com) or contact:
China Nonferrous Gold Limited
Yu Lixian, Managing Director
Tel: +86 10 8442 6681
WH Ireland Limited (NOMAD & Broker)
Katy Mitchell, James Sinclair-Ford
Tel: +44 (0)207 220 1666
Blytheweigh (PR)
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014
View source version on businesswire.com: https://www.businesswire.com/news/home/20200409005608/en/
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