Last checked at 18 Mar 2022 14:40
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Extension to Short-Term Loan
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 announces that the Company has extended the repayment term for the most recent loan with CNMC Trade Company Limited (“CNMC Trade”).
Extension Loan to CNMC Trade Company Limited
As announced on 24 January 2022, CNMC Trade provided a short term loan of USD $34.55 million to repay the existing CITIC China Bank Corporation Limited (“CITIC”) in anticipation of the Company signing a new loan with CITIC in short order.
However, the new loan from CITIC is still the subject of discussions and negotiations (including in particular around the use of proceeds for the new loan) and given the short term nature of the CNMC Trade, the Directors needed to consider other options.
Accordingly, the Company and CNMC Trade have today signed an extension agreement to extend the current short term loan to a longer term arrangement with the repayment date now being extended to 31 December 2022. As set out in the announcement of 24 January 2022, annual interest remains fixed at 3.00% and no other fees or changes are payable under the loan agreement (the “Loan”).
The Company continues to engage with commercial banking partners to explore a wider refinancing of the business and further updates will be provided in due course.
Summary of Current Financial Position
The Company has total debt facilities (including banking facilities) of c. US$319m at this current time (unaudited).
COVID 19 (Omicron) Update
The Company confirms that they have taken appropriate steps to ensure that staff at protected at site, and that to date operations at the mine site at Pakrut continue as normal. Further updates will be provided if the situation changes.
Related Party Transaction
As CNMC Trade is a wholly owned subsidiary of CNMC Group, which in turn is the parent company of China Nonferrous Metals Int’l Mining Co., Ltd (“CNMIM”), a substantial shareholder of the Company, the extension of the CNMC Trade Loan is deemed to be related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies. The Company’s board of directors (excluding Yu Lixian, Zhang Hui and Wang Xiaohua, who are appointees of CNMIM) considers, having consulted with CNG’s Nominated Adviser, WH Ireland Limited, consider that the terms of the extension of the Loan 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
Zhang Hui, Managing Director
Tel: +86 10 8442 6662
WH Ireland Limited (NOMAD & Broker)
Katy Mitchell, Andrew de Andrade
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
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