China Nonferrous Gold Limited UK Regulatory Announcement: Bridge Loan Agreement Signed
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Signature of the bridging loan agreement
COVID 19 Update
China Nonferrous Gold Limited 中国有色黄金有限公司 (AIM: CNG), the exploration and mining company currently operating the Pakrut Gold Project in the Republic of Tajikistan, is pleased to provide the following update:
CNMC Trade Company Limited Bridge Loan
The Company today signed a loan agreement with CNMC Trade Company Limited (“CNMC Trade”) for a loan of up to US$34.55 million (the “CNMC Loan”). This CNMC loan will be used to repay the existing bank facilities of China CITIC Bank Corporation Limited (“CITIC”) of USD 34.55 million (i.e. USD 20 million advanced in January 2021 (“first loan”) and USD 14.55 million advanced in March 2021 (“second loan”), as indicated in the announcements of January 22, 2021 and March 8, 2021). It has been agreed that as soon as the facilities are repaid, CITIC will enter into a new loan with the Company, and a further announcement will be made in due course to confirm the same.
The total CNMC loan amount is USD 34.55 million with a fixed annual interest rate of 3%. The maturity date of this loan is the 30th day after the effective drawing date. There are no other fees payable to CNMC Trade under this CNMC Loan.
Approximately $20 million of the CNMC loan will be drawn today and repaid to CITIC Bank to repay the first loan and an additional $14.55 million will be drawn shortly to repay the second loan.
The Company will repay the full amount of the CNMC Loan upon conclusion of the new CITIC Loan. Directors note that the requirement to repay an existing loan before a new loan is taken out is not an unusual condition of Chinese commercial banks.
While the Pakrut gold mine project continues to progress well, the company still needs to service outstanding loans, expand operations and work on site efficiency.
Summary of the current financial situation
To date, excluding the new CNMC Loan, the loans drawn by the Company amount to c. USD 319 million, including USD 99.55 million in bank facilities (unaudited).
COVID 19 Update (Omicron)
The Company confirms that it has taken appropriate measures to ensure that personnel on site are protected and that to date operations at the Pakrut mine site continue as normal. Further updates will be provided if the situation changes.
Transaction with a related party
The main shareholder of the Company is China Nonferrous Metals International Mining Co., Ltd (“CNMIM”), which holds 38% of the issued share capital of the Company and China Non-ferrous Mining Corporation (“CNMC”) is the main shareholder of CNMIM. and CNMC Commerce. Accordingly, CNMC Trade is deemed to be a related party under the rules of AIM.
The directors of the Company with the exception of (i) Yu Lixian who is the chairman of the board of directors of CNMIM and; (ii) Zhang Hui, CEO of CNMIM, and (iii) Wang Xiaohua, Director of CNMIM’s Finance Department, consider that after consultation with WH Ireland, the Company’s designated advisor, the terms of the CNMC Loan Agreement are fair and reasonable with respect to the shareholders of the Company.
For more information, please visit the Company’s website (www.cnfgold.com) or contact:
China Nonferrous Gold Limited
Zhang Hui, general manager
Tel: +86 10 8442 6662
WH Ireland Limited (NOMAD and Broker)
Katy Mitchell, Andrew de Andrade
Tel: +44 (0)207 220 1666
Tel: +44 (0)20 7138 3224
The information contained in this press release is considered by the Company to be inside information within the meaning of the Market Abuse Regulation (EU) No. 596/2014.
Category Code: MSCH
Sequence number: 755612
Received time (offset from UTC): 20220124T114919+0000