China Nonferrous Gold Financial Update

 
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

The Company has signed documentation with CNMC International Capitals Company Limited ("CNMC"), an associate of China Nonferrous Metals International Mining Co., Ltd ("CNMIM"), the Company's 38.36% shareholder, for a loan facility of USD$120 million ("CNMC Loan"). The CNMC Loan will be used to refinance the loan facility with Industrial and Commercial Bank of China (Macau) Limited ("ICBC"), under which USD$115 million is currently drawn, and for working capital.

The CNMC Loan is repayable on 31 December 2018 and includes an annual fixed interest rate of 4% on the amount drawn down, payable half yearly in arrears. There is no penalty for pre-payment, however in the event of 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 CNMC Loan is governed by the law of China and secured by a pledge granted by the Company to CNMC over its 100% equity interest in Kryso Resources Limited, CNG's wholly-owned subsidiary which indirectly holds the Pakrut project. The pledge is governed by BVI law.

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 and Weili (David) Tang, 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.

Weili (David) Tang, Managing Director of CNG, commented:

"We are delighted to have refinanced our loan with ICBC given the current challenging debt markets. The new facility provides considerable financial flexibility at a lower cost for the Company."

For further information please visit the Company's website (www.cnfgold.com) or contact:

China Nonferrous Gold Limited

David Tang, Managing Director

Tel: [phone]

Investec Bank Plc

Jeremy Ellis, George Price

Tel: [phone]

Beaufort Securities Limited

Jon Belliss

Tel: [phone]

Blytheweigh

Tim Blythe, Camilla Horsfall

Tel: [phone]

View source version on businesswire.com: http://www.businesswire.com/news/home/20160506005276/en/

 
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(END) Dow Jones Newswires

May 06, 2016 06:48 ET (10:48 GMT)