REG-China Nonferrous Gold Limited Extension to Short-Term Loan

China Nonferrous GoldAnnouncement

18/03/2022 14:45

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Extension to Short-Term Loan

 

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

(“CNG” or the “Company”)

Extension to Short-Term Loan

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 announces that the Company has extended
the repayment term for the most recent loan with CNMC Trade Company Limited
(“CNMC Trade”).

Extension Loan to CNMC Trade Company Limited

As announced on 24 January 2022, CNMC Trade provided a short term loan of USD
$34.55 million to repay the existing CITIC China Bank Corporation Limited
(“CITIC”) in anticipation of the Company signing a new loan with CITIC in
short order.

However, the new loan from CITIC is still the subject of discussions and
negotiations (including in particular around the use of proceeds for the new
loan) and given the short term nature of the CNMC Trade, the Directors needed
to consider other options.

Accordingly, the Company and CNMC Trade have today signed an extension
agreement to extend the current short term loan to a longer term arrangement
with the repayment date now being extended to 31 December 2022. As set out in
the announcement of 24 January 2022, annual interest remains fixed at 3.00%
and no other fees or changes are payable under the loan agreement (the
“Loan”).

The Company continues to engage with commercial banking partners to explore a
wider refinancing of the business and further updates will be provided in due
course.

Summary of Current Financial Position

The Company has total debt facilities (including banking facilities) of c.
US$319m at this current time (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

As CNMC Trade is a wholly owned subsidiary of CNMC Group, 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 Loan is deemed to be related party transaction pursuant to AIM Rule
13 of the AIM Rules for Companies. The Company’s board of directors
(excluding Yu Lixian, Zhang Hui and Wang Xiaohua, who are appointees of CNMIM)
considers, having consulted with CNG’s Nominated Adviser, WH Ireland
Limited, consider that the terms of the extension of the Loan are fair and
reasonable insofar as the shareholders of CNG 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=52605065&newsitemid=20220318005285&lan=en-US&anchor=www.cnfgold.com&index=1&md5=265b9f79fc18591e6993fcc2a523296a)
) 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, 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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