Last checked at 11 Sep 2020 07:13
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Extension of Procurement Agreement
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 (“Pakrut project”) in the Republic of Tajikistan, is pleased to announce that Kryso Resources Limited, a wholly owned subsidiary of the Company, has extended the procurement agreement (the “Agreement”) with China Nonferrous Metals International Mining Co. Ltd (“CNMIM”), the Company’s 38.36% shareholder, previously announced on 8 February 2018.
Under the agreement which CNMIM will continue to act as agent for Kryso Resources Limited to procure equipment, spare parts and other materials required for the Pakrut project. All terms will remain the same as the original agreement (see announcement dated 25 May 2016) save for the total amount to be procured will be limited to US$8 million.
As with the previous agreement, Kryso Resources Limited will retain the final decision in relation to the purchasing of all goods and for acting as agent for LLC Pakrut, CNMIM will also continue to be paid a commission of 5% on all goods procured. The Agreement, governed by the law of China, is valid until January 1, 2023.
Yu Lixian, Managing Director of CNG, commented:
“We are pleased to have re-signed this agreement with CNMIM, it will allow the Company to continue to benefit from CNMIM’s purchasing power and increase our supply options.”
Related Party Transaction
CNMIM is a substantial shareholder of the Company and, as a result, pursuant to AIM Rule 13, the entry into the Agreement with CNMIM is deemed to be a related party transaction. The Independent Directors of the Company namely Shi Xiuzhi and Li Yong consider, having consulted with CNG’s Nominated Adviser, WH Ireland, that the terms of the Agreement are fair and reasonable insofar as the shareholders of CNG are concerned.
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
Katy Mitchell/James Sinclair-Ford
Tel: 0207 220 1666
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
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