China Nonferrous Gold Consultancy Contract for the Construction of Processing Plant, Smelting Plant and Ancillary Facilities
13 September 2018 - 7:25PM
UK Regulatory
TIDMCNG
13September 2018
China Nonferrous Gold Limited
("CNG" or the "Company")
Consultancy Contract for the Construction of Processing Plant,
Smelting Plant and Ancillary Facilities
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 announce that
the Company has authorised its subsidiary, Kryso Resources Limited,
to enter into a new supplementary consultancy contract for the
construction of processing plant, smelting plant and ancillary
facilities with China 15th Metallurgical Construction Group Co.,
Ltd ("15MCC"), the former contractor of the construction project.
China Nonferrous Metals International Mining Co., Ltd ("CNMIM")
will no longer act as the agent for the Company regarding the
contract.
As described in the "Award of Consultancy Contracts"
announcement on 2 September 2014, CNMIM was authorised, while
acting as agent for the Company, to enter into two consultancy
contracts for the Company, one of which was for the construction of
processing plant, smelting plant and ancillary facilities. It is no
longer necessary for CNMIM to act as agent for CNG as Kryso
Resources Limited is familiar with the contract and this
simplification is expected to create cost and contract performance
efficiencies.
A supplementary consultancy contract between Kryso Resources
Limited and 15MCC has been entered into as the labour cost of the
drainage work has significantly reduced (from 289 RMB/day to 135
RMB/day for each individual) and the overall unit price of backfill
station work has decreased by 5% compared with the original
contract. Thus, a supplementary contact has been signed, updated
with these latest reduced prices for the construction work.
The estimated total target construction cost and consultancy fee
under the new contract is broadly consistent with the original
position announced on 2 September 2014.
Related Party Transaction
As 15MCC is an associate of CNMIM, a substantial shareholder in
the Company and pursuant to AIM Rule 13, the entry into the
supplementary consultancy contract 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) consider,
having consulted with CNG's Nominated Adviser, Investec Bank plc,
that the terms of the supplementary consultancy contract 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
Yu Lixian, Managing Director
Tel: +86 10 8442 6681
Investec Bank Plc
Jeremy Ellis, Alexander Ruffman
Tel: +44 (0)20 7597 5970
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180913005401/en/
This information is provided by Business Wire
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September 13, 2018 05:25 ET (09:25 GMT)
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