Last checked at 16 Feb 2022 17:17
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Gold Dore Sale 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 in the Republic of Tajikistan, is pleased to announce that the Company has authorized its subsidiary, LLC Pakrut, to enter into a Gold Doré sale agreement with Daye Nonferrous Metals Company Limited (“Daye Nonferrous” or the “Buyer”), for the sale of up to 600kg of Gold Doré (“Sale Agreement”).
The Sale Agreement supplements the agreements with the Tajikistan Government which collectively covers the majority of gold anticipated to be produced at Pakrut for the calendar year. In 2021 the Company produced a total of 1,249kg of gold bullion, 1,199kg of which was sold to the Tajikistan government on similar terms, and 50kg was sold to Daye Nonferrous (see announcement dated 07 September 2021).
The terms of this new Sale Agreement remain in force until 30 December 2022, after which the contract may be renewed. The Gold Doré to be sold under this agreement is to be produced at the Company’s Parkrut gold mine in Tajikistan and gold purity is to be at, or above, 99.95% with each bar weighing approximately 400oz.
The London Bullion Market Association’s Precious Metal’s Gold Price in USD (as published in the London Metal Bulletin on the business day prior to the collection date of the Buyer’s nominated carrier) is to be used to set the settlement price. At today’s price of US$1,850 per ounce the total contract, if fulfilled in its entirety, would represent a total consideration of approximately US$35m; however as the contract is dependent upon the gold being produced there can be no guarantee this amount will be received. The Company will receive a provisional payment of up to 95% of the contained gold, after the Gold Doré has been collected by the Buyer’s nominated carrier.
Related Party Transaction
Daye Nonferrous is subsidiary of China Nonferrous Metals Mining (Group) Co., Ltd (“CNMC Group”) which is also the parent company of China Nonferrous Metals Int’l Mining Co., Ltd (“CNMIM”), the substantial shareholder of the Company. Accordingly, the Gold Dore Sales Agreement 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 connected to CNMIM) consider, having consulted with CNG’s Nominated Adviser, WH Ireland Limited, that the terms of the Sale 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
Zhang Hui, Managing Director
Tel: +86 10 8442 6662
WH Ireland Limited (NOMAD & Broker)
Katy Mitchell, James Sinclair-Ford
Tel: +44 (0)207 220 1666
Blytheweigh (PR)
Tim Blythe
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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