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Execution of Short-term Loan Agreement
China Nonferrous Gold Limited 中国有色黄金有限公司
(“CNG” or the “Company”)
Execution of Short-term Loan Agreement
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:
Short-term 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 $19.50 million (the “CNMC
Loan”). The CNMC Loan will be used to repay the existing China CITIC Bank
Corporation Limited (“CITIC”) loan facility of USD $20m, which is due for
repayment on 24(th) January 2023 (see announcement dated 22 January 2021 and
24 January 2022 for further details). The outstanding balance of US$0.5m of
the CITIC bank loan will be repaid from the Company’s existing cash
resources.
The CNMC Loan is repayable within 3 months from the date of drawdown. The
terms of the CNMC Loan includes an annual interest at 0.5% over 3 month LIBOR.
There are no extra fees payable to CNMC Trade for this arrangement.
Approximately US$19.50 million (all) of the CNMC Loan is expected to be drawn
down immediately.
Summary of Current Financial Position
At the current time, excluding the loans outlined above, loans drawn down by
the Company amount to c. USD$318.48 million, this includes US$85m of banking
facilities (unaudited).
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 to the Company 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=53289718&newsitemid=20230124005542&lan=en-US&anchor=www.cnfgold.com&index=1&md5=736a59edce99f5eb7e4e59654cd12c80)
) 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
BlytheRay (PR)
Tim Blythe, Megan Ray
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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