VANCOUVER, BC, Oct. 27,
2022 /CNW/ - Minco Silver
Corporation (the "Company" or "Minco
Silver") (TSX: MSV) (OTCQX: MISVF) (WKN: A0ESX5) is
pleased to announce that it has received a $5.9 million (RMB 31
million) loan repayment from Changing Longxin Mining Co.,
Ltd ("Longxin Mining") in October
2022.
The Company signed a loan agreement with Longxin Mining for a
loan of $14.6 million (RMB 73.8 million) in 2018 (the "Note"). The Note
was secured by 100% equity interest in Longxin Mining and all
assets of Longwanshang Gold Mine. In addition, the Note is
guaranteed by both Longxin Mining's shareholders and a real estate
company controlled by them, including land, real estate and cash
security.
The Note's matured in February
2019 and was extended several times until June 30, 2021. However, Longxin Mining failed to
repay the total outstanding amount on the agreement expiration
date. The Company initiated a legal action to recover the
outstanding Note principal and accrued interest. In November 2021, the Company received a favorable
court verdict, ordering Longxin Mining and other related defendants
must repay the Company's claimed amounts and the legal and court
fee. Longxin Mining filed an appeal against the verdict in
December 2021. In June 2022, the court made a final judgment,
upholding the original decision. Consequently, the Company has
received a $5.9 million (RMB 31.0 million) loan repayment, including
$2.8 million (RMB 14.7 million) in principle and $3.1 million (RMB 16.3
million) in interest payments from Longxin Mining in
October 2022.
From 2018 to date, the Company has received a total of
$13.8 million (RMB 71.8 million) from Longxin Mining, including
$6.4 million (RMB 33.1 million) in principle and $7.4 million (RMB 38.7
million) in interest payments. As of this news release date,
the outstanding balance of the loan is $7.9
million (RMB 41.3 million).
The court continues to take action to collect the remaining balance
of the loan from Longxin Mining.
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Note: The amounts
mentioned in this news release are subject to changes in foreign
exchanges.
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SOURCE Minco Silver Corporation
