REG-China Nonferrous Gold Limited Execution of Bridging Loan Agreement

China Nonferrous GoldAnnouncement

24/01/2022 11:55

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Execution of Bridging Loan Agreement

 

China Nonferrous Gold Limited 中国有色黄金有限公司

(“CNG” or the “Company”)

Execution of Bridging Loan Agreement

Update on COVID 19

China Nonferrous Gold Limited 中国有色黄金有限公司 (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
update:

Bridging Loan from CNMC Trade Company Limited

The Company has today executed a loan agreement with CNMC Trade Company
Limited (“CNMC Trade”) for a loan of up to USD $34.55 million (the “CNMC
Loan”). This CNMC Loan will be used to repay the existing China CITIC Bank
Corporation Limited (“CITIC”) bank facilities of USD $34.55m (being USD20m
advanced in January 2021 (“First Loan”) and USD14.55m advanced in March
2021 (“Second Loan”), as set out in the announcements dated 22 January
2021 and 8 March 2021). It has been agreed that as soon as the facilities are
repaid CITIC will enter into a new loan with the Company, and a further
announcement will be made in due course to confirm the same.

The total amount of the CNMC Loan is USD 34.55m with 3% fixed annual interest
rate. The maturity date of this loan is the 30th day after the actual drawdown
date. There are no other fees payable to CNMC Trade under this CNMC Loan.

Approximately US$20m of the CNMC Loan will be drawn down today and repaid to
CITIC bank to repay the First Loan and a further US$14.55m will be drawn down
shortly to repay the Second Loan.

The Company will repay the total amount of the CNMC Loan as soon as the new
CITIC loan is entered into. The Directors advise that the requirement to repay
an existing loan before a new loan is taken out is not an unusual condition of
Chinese commercial banking.

Additional Information

Whilst the Pakrut Gold Mine Project continues to progress well but the Company
still needs to service the outstanding loans, expand operations and work on
efficiencies at site.

Summary of Current Financial Position

At the current time, excluding the new CNMC Loan, loans drawn down by the
Company amount to c. USD$319 million, this includes US$99.55m of banking
facilities (unaudited).

COVID 19 (Omicron) Update

The Company confirms that they have taken appropriate steps to ensure that
staff at protected at site, and that to date operations at the mine site at
Pakrut continue as normal. Further updates will be provided if the situation
changes.

Related Party Transaction

The Company’s major shareholder is China Nonferrous Metals International
Mining Co., ltd (“CNMIM”), which holds 38% of the issued share capital of
the Company and China Non-ferrous Mining Corporation (“CNMC”) is the major
shareholder of CNMIM and CNMC Trade. Accordingly, CNMC Trade is deemed to be a
related party under the AIM Rules.

The directors of the Company with the exception of (i) Yu Lixian who is the
chairman of the board of CNMIM and; (ii) Zhang Hui who is CEO of CNMIM, and
(iii) Wang Xiaohua who is the director of Finance Department of CNMIM,
consider that having consulted with WH Ireland, the Company’s nominated
adviser, the terms of the CNMC Loan agreement are fair and reasonable insofar
as the Company’s shareholders are concerned.

For further information please visit the Company’s website (www.cnfgold.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.cnfgold.com&esheet=52567354&newsitemid=20220124005411&lan=en-US&anchor=www.cnfgold.com&index=1&md5=9194e95c5b655b10b81fed9bca597e6a)
) or contact:

China Nonferrous Gold Limited

Zhang Hui, Managing Director

Tel: +86 10 8442 6662

WH Ireland Limited (NOMAD & Broker)

Katy Mitchell (mailto:Katy.Mitchell@whirelandcb.com) , Andrew de Andrade

Tel: +44 (0)207 220 1666

Blytheweigh (PR)

Tim Blythe

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



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China Nonferrous Gold Limited


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