China Nonferrous Gold Financial Update
29 September 2017 - 4:09PM
UK Regulatory
TIDMCNG
China Nonferrous Gold Limited ??????????
("CNG" or the "Company")
Financial Update
China Nonferrous Gold Limited ?????????? (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/
This information is provided by Business Wire
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September 29, 2017 02:09 ET (06:09 GMT)
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