REG-China Nonferrous Gold Limited Extension to Loan Agreements

China Nonferrous GoldAnnouncement

12/07/2023 09:30

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Extension to Loan Agreements

 

China Nonferrous Gold Limited

(“CNG” or the “Company”)

Extension to Loan Agreements

Related Party Transaction

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, announces that the Company has extended
the repayment period for a series of loans that are in place with CNMC Trade
Company Limited (“CNMC Trade”) and CNMC International Capitals Company
Limited (“CNMC International”). The loans being extended total US$238.39m
(CNMC Trade: USD $177.65 million and CNMC International: USD $60.74 million)
(together the “Loans”)

At the date of this announcement, the Company has total debt facilities (all
from connected parties and with no commercial banking facilities) of c.
US$316m (unaudited).

Extension of CNMC Trade Loans

The current loans provided by CNMC Trade, which are to be extended and which
were detailed in the announcement dated 26 March 2021 and 18 March 2022, are
set out below. The Company has negotiated a lower interest rate than under the
previous arrangement and the interest rate is now linked to SOFR instead of
LIBOR, following LIBOR being discontinued. Other than the change to the
interest rate and the extension to the term, no other changes have been made
to any of the loan agreements:


 * A loan of US$123.6m: -the Company has today signed an extension agreement
pursuant to which the repayment date for this loan has been extended to 20
December 2023. The annual interest rate of the loan has been amended to SOFR
plus 0.936% (it was previously 3.25% over 3 month LIBOR), and this new
interest rate has been applied retrospectively from 16 March 2023. Interest
will be payable on 31 March, 30 June, 30 September and 31 December each year;

 * A loan of US$20m: - the Company has today signed an extension agreement
pursuant to which the repayment date for this loan has been extended to 26
November 2023. The annual interest rate of the loan has been changed to SOFR
plus 0.936% (it was previously 3.25% over 3 month LIBOR), and this new
interest rate has been applied retrospectively from 16 March 2023. Interest
will be payable on 31 March, 30 June, 30 September and 31 December each year;

 * A loan of US$14.55m: - the Company has today signed an extension agreement
pursuant to which the repayment date for this loan will be extended to 31
December 2023. The annual interest rate of the loan has been amended to SOFR
plus 0.936% (it was previously 3.00%), and this new interest rate has been
applied retrospectively from 16 March 2023. Interest will be payable on 31
March, 30 June, 30 September and 31 December each year;

 * A loan of US$19.50m: - the Company has today signed an extension agreement
pursuant to which the repayment date for this loan will be extended to 19
April 2024.The annual interest rate of the loan has been changed to SOFR plus
0.936% (it was previously 0.5% over 3 month LIBOR) and this new interest rate
has been applied retrospectively from 20 April 2023. Interest will be payable
on 31 March, 30 June, 30 September and 31 December each year;

Extension of Loans with CNMC International

In addition, the loan provided by CNMC International of US$60.74m, which has
also been extended so that the repayment date for this loan is now 8 December
2023. The annual interest rate of the loan has been changed to SOFR plus
0.936% (it was previously 3.25% over 3 month LIBOR), and this new interest
rate has been applied retrospectively from 16 March 2023. Interest will be
payable on 31 March, 30 June, 30 September and 31 December each year. There
have been no other changes to this loan arrangement.

Related Party Transaction

As CNMC Trade and CNMC International are wholly owned subsidiaries of China
Nonferrous Metals Mining (Group)Co., Ltd which in turn is the parent company
of China Nonferrous Metals Int’l Mining Co., Ltd (“CNMIM”), a
substantial shareholder of the Company the extension of the CNMC Trade and
CNMC International Loans are deemed to be related party transactions pursuant
to AIM Rule 13 of the AIM Rules for Companies. The Company’s Directors
(excluding Yu Lixian, Feng Zhishuo and Wang Xiaohua, who are connected to
CNMIM) consider, having consulted with CNG’s Nominated Adviser, WH Ireland
Limited, that the terms of the extension of the Loans are fair and reasonable
insofar as the shareholders of CNG are concerned.

The Company continues to engage with commercial banking partners to explore a
wider refinancing of the business and will update shareholders in due course.

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=53451085&newsitemid=20230712160247&lan=en-US&anchor=www.cnfgold.com&index=1&md5=27597bc2c015734660a300ec09b22ce8)
) or contact:

China Nonferrous Gold Limited

Feng Zhishuo, Managing Director

Tel: +86 10 8442 6627

WH Ireland Limited (NOMAD & Broker)

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

Tel: 0207 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

Project Summary

The Pakrut gold project, of which CNG has 100 per cent ownership, is situated
in Tajikistan approximately 120 km northeast of the capital city Dushanbe.
Pakrut is located within the Tien Shan gold belt, which extends from
Uzbekistan into Tajikistan, Kyrgyzstan and Western China, and which hosts a
number of multi-million ounce gold deposits.

About Tajikistan

Tajikistan is a secular republic located in Central Asia. The country is a
member of the Commonwealth of Independent States and the Shanghai Cooperation
organization. Tajikistan hosts numerous operating precious metal mines as well
as the largest aluminum smelter in Central Asia. CNG's management team has
extensive experience in the mining industry in Tajikistan.



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China Nonferrous Gold Limited


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