Last checked at 29 Sep 2017 07:09
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 financial update.
Loan Agreement with CNMC
Following the substantial operational issues that have impacted the Company as a result of the avalanches and landslides earlier in the year, the Company is pleased to announce it has signed a short-term financing arrangement with CNMC International Capitals Company Limited, an associate of China Nonferrous Metals International Mining Co., Ltd (“CNMIM”), the Company’s 38.36% shareholder, for a total loan facility of US$6.5 million (“CNMC Loan”) to provide additional working capital.
The CNMC Loan comprises three tranches of US$1 million, US$4 million and US$1.5 million, each tranche is repayable on 15 December 2017, 23 December 2017 and 19 January 2018, respectively.
The CNMC Loan incurs an annual fixed interest rate of 4% on the amount drawn down, interest is payable quarterly in arrears. There is no penalty for pre-payment, however, in the event default an interest rate of 6% per annum will be applied on any overdue amount from the date on which it is due until the date on which it is repaid.
The Company is in discussions with its lending syndicate with regards to a wider refinancing and in order to be able to repay the CNMC Loan and amounts due under the Company’s existing facilities.
Related Party Transaction
As CNMC is an associate of CNMIM, a substantial shareholder in the Company and pursuant to AIM Rule 13, the provision of the CNMC 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 CNMC Loan are fair and reasonable insofar as the shareholders of CNG are concerned.
Yu Lixian, Managing Director of CNG, commented:
“We are delighted to have the additional support and comfort from this short term financing with CNMC. The new facility provides considerable financial support for the daily operation of the Company and construction for the Pakrut gold mine. We hope to be able to update shareholders on our refinancing process in due course.”
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
View source version on businesswire.com: http://www.businesswire.com/news/home/20170928006455/en/
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