China Nonferrous Gold Financial Update
March 05 2018 - 3:47AM
UK Regulatory
TIDMCNG
5 March 2018
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 International Capitals Company
Limited
The Company is pleased to announce it has signed a financing
arrangement with CNMC International Capitals Company Limited ("CNMC
International"), an associate of China Nonferrous Metals
International Mining Co., Ltd ("CNMIM"), the Company's 38.36%
shareholder, for a total loan facility of US$90 million (the
"Loan"). The Loan will be used to repay US$30 million of
outstanding facilities with China Construction Bank Corporation
Macau Branch ("CCB Macau"), US$30 million of outstanding facilities
with CNMC International and also to fund the restoration of
production. This will include the purchase of equipment, completion
of the construction of the ventilation system, tailings pond and
backfill station and working capital.
The CNMC Loan is valid for 3 years and shall be repayable on 8
February 2020.
The CNMC Loan incurs an annual fixed interest rate of 5.8% on
the amount drawn down, interest is payable
half-yearly/semi-annually in arrears. There is no penalty for
pre-payment, however, in the event default an interest rate of 8.7%
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 US$30 million repayment to CCB Macau will be made
immediately and the US$30 million repayment of facilities held with
CNMC International will be made later in 2018.
The Company's gross debt outstanding as at the date of this
announcement, before the repayments noted above, totals
approximately US$364.2 million of which $175 million is repayable
during 2018.
Taking account of the repayments noted above, the Company will
owe a further $115 million by 31 December 2018. As previously
announced certain of the Company's facilities are secured by a
pledge over the Company's ownership of the Pakrut mine.
The Company expects to recommence production during the first
half of 2018 and therefore to enable repayment of the existing
facilities it will require a wider refinancing, as previously
announced. Discussions are ongoing and with the signing of the
Loan, the remaining discussions are expected to be concluded in
advance of 31 December 2018 deadline, without this the Company
would not be able to continue operations.
Yu Lixian, Managing Director of CNG, commented:
"Given the significant issues the Company encountered during
early 2017 we have been, and continue to be, reliant on support
from our major shareholder. We are grateful for the support and are
working hard as a business to restore production and refinance our
existing debt."
Related Party Transaction
CNMC International, is an associate of CNMIM, the Company's
38.36% shareholder, as a result, pursuant to AIM Rule 13, the entry
into the Loan agreement is deemed to be a related party
transaction. The Independent Directors of the Company namely Shi
Xiuzhi and Li Yong consider, having consulted with CNG's Nominated
Adviser, Investec Bank plc, that the terms of the 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
Investec Bank Plc
Jeremy Ellis, George Price
Tel: +44 (0)20 7597 4000
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
View source version on
businesswire.com:http://www.businesswire.com/news/home/20180305005501/en/
This information is provided by Business Wire
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March 05, 2018 04:47 ET (09:47 GMT)
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