China Nonferrous Gold Extension of CNMC Loans
July 01 2019 - 1:00AM
UK Regulatory
TIDMCNG
China Nonferrous Gold Limited
("CNG" or the "Company")
Extension of CNMC Loans
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
an associated company, CNMC International Capitals Company Limited
("CNMC International") has extended the Package of total amount of
USD$146.5 million CNMC Loans with the following financial
update.
As announced on 29 January 2019, the Company has been in
discussions to agree a formal extension of its existing debt
facilities with CNMC International, as a number of the debt
facilities were due for repayment. The current debt facilities are
as follows:
-- the loan facility of USD$120 million with CNMC International Capitals Company Limited ("CNMC International") entered into on 6 May 2016 was repayable on 31 December 2018 (Package A);
-- the loan facility of USD$20 million with CNMC Loan entered into on 24 November 2017 is repayable on 26 November 2018 (Package B); and
-- the loan facility of USD$ 6.5 million with CNMC Loan entered into on 14 December 2017 comprising three tranches of US$1 million, US$4 million and US$1.5 million repayable on 15 December 2017, 23 December 2017 and 19 January 2018, respectively (Package C).
The Company has now signed an extension agreement with CNMC
International, an associate of China Nonferrous Metals
International Mining Co., Ltd ("CNMIM"), the Company's 38.36%
shareholder, for the extension of the package of total amount of
USD$146.5 million CNMC Loans as follows:
-- Package A is extended so as to be repayable on 20 December 2019 and the annual interest rate has been changed from a fixed rate of 4% to at 3.7% plus 6 month LIBOR;
-- Package B is extended so as to be repayable on 26 November 2019 with the annual interest rate changed from a fixed rate of 4% to a rate of 3.7% plus 6 month LIBOR;
-- Package C is extended so as to be repayable on 20 December 2019 with the annual interest rate changed from a fixed rate of 5% to a rate of 3.7% plus 6 month LIBOR.
Note: US 6 month LIBOR as at 28 June 2019 was 2.2%
In addition, in each case, the creditor of the total amount of
USD$146.5 million has changed from CNMC International to CNMC Trade
Company Co., Ltd ("CNMC Trade"), another associate of CNMIM.
In order to meet the above repayment timetable, the Company
continues to engage in discussions regarding a wider refinancing of
the business and will update shareholders in due course.
Related Party Transaction
As both CNMC international and CNMC Trade are associates of
CNMIM, a substantial shareholder in the Company, and pursuant to
AIM Rule 13 the extension of the CNMC Loan is deemed to be a
related party transaction. The Company's independent directors
(excluding Wu Xiang, Yu Lixian and Feng Delin, who are appointees
of CNMIM) consider, 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
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 in a commissioning phase with mining
contractors on site finalising construction of the mine, plant,
tailings dam and refinery.
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.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190630005104/en/
This information is provided by Business Wire
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July 01, 2019 02:00 ET (06:00 GMT)
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