REG-China Nonferrous Gold Limited Execution of New Loan Agreement

China Nonferrous GoldAnnouncement

23/06/2021 10:00

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Execution of New Loan Agreement

 

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

(“CNG” or the “Company”)

Execution of New 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:

Banking Facility from Bank of Shanghai (Hong Kong) Limited

The Company has today executed an agreement with Bank of Shanghai (Hong Kong)
Limited (“BOS”) for a loan facility of up to US $65 million (the “BOS
Loan”). The Loan facility is for a maximum of 24 months and is repayable 24
months from the drawdown. The terms of the BOS Loan include an annual interest
rate at 1.30% plus 3 month LIBOR.

Separately, it has been agreed (as a standalone agreement) that the facility
will be guaranteed by a standby letter of credit from China Nonferrous Metal
Mining (Group) Co., Ltd (“CNMC”) (the “Guarantee”), for the aggregate
amount of USD$66 million, such guarantee also expires 24 months from the date
of the drawdown (the “SBLC”). The total amount of the Loans shall not
exceed 99% of the total value of the SBLC at any time.

It has also been agreed that 0.2% per annum of the total sum is payable as
arrangement fee by CNG to BOS.

There are no fees payable to CNMC by CNG for providing the guarantee.

The total amount of US$65m of the BOS Loan is expected to be drawn down before
the end of the month in order to repay the CCBC Macau loan, of which US $65m
remains outstanding (see announcement dated 1 July 2016 for more details of
this arrangement). This loan is due for repayment before the end of June 2021.

Summary of Current Financial Position

At the current time, excluding the BOS Loan outlined above, loans drawn down
by the Company amount to c. USD$328 million, this includes US$99.55m of
banking facilities (unaudited).

COVID 19 Update

The Directors confirm that they continue to take appropriate steps to ensure
that staff are protected at site, and that to date operations at the mine site
at Pakrut continue as normal, despite COVID 19. Further updates will be
provided if the situation changes.

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=52450016&newsitemid=20210623005434&lan=en-US&anchor=www.cnfgold.com&index=1&md5=10afecf5d53423f77c410c3aa1bd08eb)
) 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) , James Sinclair-Ford

Tel: +44 (0)207 220 1666

Blytheweigh (PR)

Tim Blythe, Camilla Horsfall

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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