CHINA NONFERROUS GOLD: Extension to Loan Agreement
15 July 2020 - 7:47PM
UK Regulatory
TIDMCNG
China Nonferrous Gold Limited
("CNG" or the "Company")
Extension to Loan Agreement
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 extended the repayment period for Loans that in
place with CNMC Trade Company Limited ("CNMC Trade"). The loans in
place with CNMC Trade total USD $146.5 million.
The Company has total debt facilities (including banking
facilities) of c. US$341m at this current time (unaudited).
As announced on 09 April 2020, the Company has been in
discussions to agree a formal extension of its existing debts
facilities with CNMC Trade, as the loans were due for
repayment.
The current loans provided by CNMC Trade, which were also
detailed in the announcement dated 1 July 2019, are set out below,
along with the new repayment date. No other changes have been made
to the loan agreements:
-- A loan of US$120m. This was due to be repaid on 20 December 2019 but, in
support of the Company's business, conversations have been progressing to
agree an extension . It is now agreed that the repayment date for this
loan will be extended to 20 December 2020. Annual interest remains
unchanged (it is 3.7% over 6 month LIBOR). Interest will be payable on 30
June and 31 December each year;
-- A loan of US$6.5m. This was due to be repaid on 20 December 2019 but
which has been informally extended on a month by month basis. It is now
agreed that the repayment date for this loan will be extended to 20
December 2020. Annual interest remains unchanged (it is 3.7% over 6 month
LIBOR). Interest will be payable on 30 June and 31 December each year;
-- A loan of US$20m. This was due to be repaid on 26 November 2019. It has
been informally extended on a month by month basis. It is now agreed that
the repayment date for this loan will be extended to 26 November 2020.
Annual interest remains unchanged (it will be 3.7% over 6 month LIBOR).
Interest will be payable on 30 June and 31 December each year;
CNMC Trade is a wholly owned subsidiary of China Nonferrous
Metals Mining (Group)Co., Ltd ("CNMC Group"), a substantial
shareholder in the Company.
The Company continues to engage with commercial banking partners
to explore a wider refinancing of the business and will update
shareholders in due course.
Related Party Transaction
As CNMC Trade is a wholly owned subsidiary of CNMC Group, a
substantial shareholder in the Company, the extension of the CNMC
Loan is deemed to be a related party transaction pursuant to AIM
Rule 13 of the AIM Rules for Companies. The Company's board of
directors (excluding Liang Boyi, Yu Lixian and Feng Delin, who are
appointees of CNMIM) considers, having consulted with CNG's
Nominated Adviser,WH Ireland Limited, that the terms of the
extension of the CNMC Loan 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
WH Ireland Limited (NOMAD & Broker)
Katy Mitchell, James Sinclair-Ford
Tel: 0207 220 1666
Blytheweigh (PR)
Tim Blythe, Camilla Horsfall
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
Project Summary
The Pakrut gold project, of which CNG has 100 per cent
ownership, is situated in Tajikistan approximately 120 km northeast
of the capital city Dushanbe. Pakrut is located within the Tien
Shan gold belt, which extends from Uzbekistan into Tajikistan,
Kyrgyzstan and Western China, and which hosts a number of
multi-million ounce gold deposits.
CNG is currently continued full production despite COVID-19, and
the operation of Pakrut gold mine is remaining stable overall and
the key technical production figures were increased
significantly.
About Tajikistan
Tajikistan is a secular republic located in Central Asia. The
country is a member of the Commonwealth of Independent States and
the Shanghai Cooperation Organisation. Tajikistan hosts numerous
operating precious metal mines as well as the largest aluminium
smelter in Central Asia. CNG's management team has extensive
experience in the mining industry in Tajikistan.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200715005392/en/
CONTACT:
China Nonferrous Gold Limited
SOURCE: China Nonferrous Gold Limited
Copyright Business Wire 2020
(END) Dow Jones Newswires
July 15, 2020 05:47 ET (09:47 GMT)
China Nonferrous Gold (LSE:CNG)
Historical Stock Chart
From Jun 2024 to Jul 2024
China Nonferrous Gold (LSE:CNG)
Historical Stock Chart
From Jul 2023 to Jul 2024