REG-China Nonferrous Gold Limited Gold Dore Sale Agreement

China Nonferrous GoldAnnouncement

07/09/2021 12:45

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Gold Dore Sale Agreement

 

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

(“CNG” or the “Company”)

Gold Dore Sale 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 announce that the Company
has authorized its subsidiary, LLC Pakrut, to enter into a Gold Doré sale
agreement with Daye Nonferrous Metals Company Limited (“Daye Nonferrous”
or the “Buyer”), for the sale of up to 300kg of Gold Doré (“Sale
Agreement”).

The Sale Agreement supplements the agreements with the Tajikistan Government
which collectively covers the majority of gold anticipated to be produced at
Pakrut for this calendar year. In 2020 the Company produced a total of 1,126kg
of gold bullion which was sold to the Tajikistan government on similar terms.

The terms of this Sale Agreement remain in force until 31 December 2021, after
which the contract may be renewed. The Gold Doré to be sold under this
agreement is to be produced at the Company’s Parkrut gold mine in Tajikistan
and gold purity is to be at, or above, 99.95% with each bar weighing
approximately 400oz.

The London Bullion Market Association’s Precious Metal’s Gold Price in USD
(as published in the London Metal Bulletin on the collection date of the
Buyer’s nominated carrier) is to be used to set the settlement price. At
today’s price of US$1,823 per ounce the total contract, if fulfilled in its
entirety, would represent a total consideration of approximately US$17m. The
Company can apply for provisional payment of up to 95% of the contained Au,
one business day after the Gold Doré being collected by the Buyer’s
nominated carrier.

Related Party Transaction

Daye Nonferrous is subsidiary of China Nonferrous Metals Mining (Group) Co.,
Ltd (“CNMC Group”) which is also the parent company of China Nonferrous
Metals Int’l Mining Co., Ltd (“CNMIM”), the substantial shareholder of
the Company. Accordingly, the Gold Dore sales transaction 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 connected to CNMIM) consider, having consulted with
CNG’s Nominated Adviser, WH Ireland Limited, that the terms of the Sale
Agreement 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=52487195&newsitemid=20210907005499&lan=en-US&anchor=www.cnfgold.com&index=1&md5=b79c8142209e1455ca65967da9472ea1)
) 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

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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