Last checked at 26 Oct 2017 08:27
26 October 2017
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Financial Update
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 related party transaction.
Financial Update & Loan
As announced in conjunction with the Company's interim results for the period ended 30 June 2017, the Company is in the process of refinancing its existing debt obligations. In late September 2017, to provide further flexibility and working capital, and to give management the appropriate time to secure the best deal for shareholders, the Company signed a loan agreement with CNMC International Capitals Company Limited, for US$6.5 million.
Further to the CNMC loan, the Company’s subsidiary, Kryso Resources Limited Beijing Representative Office, has entered in to a short-term loan agreement with China Nonferrous Metals International Mining Co., Ltd (“CNMIM”), the Company’s 38.36% shareholder for a total of 1.5 million RMB (approximately US$226 thousand). The loan will not attract any interest and is repayable by 27 January 2018. The loan will only be used to fund working capital.
The Company continues to engage in discussions regarding a wider refinancing of the business. As noted in the Company’s interim results for the period ended 30 June 2017 the refinancing is required in the near-term to repay US$20,000,000 of its loan to CNMC International Capitals Company Limited due on 26 November 2017 as well as the short term financing announced on 29 September 2017 which is due shortly afterwards.
Related Party Transaction
As CNMIM is the substantial shareholder in the Company and pursuant to AIM Rule 13, the provision of the CNMIM Loan is deemed to be a related party transaction. The Company’s board of directors (excluding Wu Xiang, Yu Lixian and Zhang Hao, who are appointees of CNMIM) considers, having consulted with CNG’s Nominated Adviser, Investec Bank plc, that the terms of the CNMIM 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
Yu Lixian, Managing Director
Tel: +86 10 8442 6681
Investec Bank Plc
Jeremy Ellis, George Price
Tel: +44 (0)20 7597 4000
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0)20 7382 8300
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
LEI: 213800N6OF4LUDO7WD52
2.2. Inside information
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