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7 Sep 2023 17:15
China Nonferrous Gold Limited
(“CNG” or the “Company”)
Financial Position
China Nonferrous Gold Limited (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, announces that it has received notice from one of its creditors, CNMC Trade Company Limited (“CNMC Trade”), that the loan of US$65m that CNMC Trade provided CNG on 6 June 2023 (“First Loan”), which is now due for renewal, will not be extended. The associated interest amounts to US$987,815.25 to date.
CNMC Trade has requested that CNG prepare a repayment plan for approval. CNMC Trade have also given notice that it is reserving all rights to pursue legal action to recover the sums due under the First Loan, although it advises that it will give at least 7 days’ notice of any intention to do so.
At today’s date CNG has a cash balance of US$4.96m and loans of US$316m, of which US$242.65m including this loan is provided by CNMC Trade and is due for repayment within the next 12 months.
The call for the repayment of the loan does not impact the underlying operations at the Pakrut mine, which will continue as normal.
The Company’s ability to continue as a going concern is reliant on the continued forbearance of CNMC Trade. Should the Company and CNMC Trade be unable to agree an acceptably phased repayment schedule and/or the Company be unable to refinance the loan then it is likely that the Company may need to be wound up.
The Directors of the Company will work with CNMC Trade to consider their options and further updates will be provided in due course.
For further information please visit the Company’s website (www.cnfgold.com) or contact:
China Nonferrous Gold Limited
Feng Zhishuo, Managing Director
Tel: +86 10 8442 6627
WH Ireland Limited (NOMAD & Broker)
Katy Mitchell, Andrew de Andrade
Tel: +44 (0)207 220 1666
BlytheRay (PR)
Tim Blythe, Megan Ray
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/20230907120349/en/
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