China Nonferrous Gold Financial Update
06 May 2016 - 11:48AM
UK Regulatory
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: +86 10 8442 6681
Investec Bank Plc
Jeremy Ellis, George Price
Tel: +44 (0)20 7597 4000
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0)20 7382 8300
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
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)