China Natural Resources' Subsidiary Enters Into Bank Financing Arrangement
July 07 2009 - 2:11PM
PR Newswire (US)
HONG KONG, July 7 /PRNewswire-FirstCall/ -- CHINA NATURAL
RESOURCES, INC. (NASDAQ:CHNR), a company incorporated in the
British Virgin Islands, today announced that Bayannaoer Feishang
Copper Company Limited, the Company's indirect 60%-owned subsidiary
based in the People's Republic of China, had entered into a series
of agreements relating to a RMB250 million (approximately US$36.59
million) bank loan from The People's Bank of China, Shenzhen
Branch. Feishang Copper is principally engaged in the smelting and
refining of blister/anode copper and sulfuric acid for distribution
in the PRC. The purpose of the bank loan is to finance the
operation of Feishang Copper. The principal amount of the loan is
to be repaid in RMB50 million (approximately US$7.32 million)
installments, during the period from October 1, 2010 through July
1, 2013, when the then outstanding principal amount of the Bank
Loan is due and payable. Interest on the loan is payable quarterly,
commencing September 21, 2009, at the base lending rate of The
People's Bank of China from time-to-time in effect (currently 5.76%
per annum). The bank loan is secured by all of the land, building
and plant and machinery of Feishang Copper, and repayment of the
loan has been guaranteed by Mr. Li Feilie (the Company's Chairman,
Chief Executive Officer and principal beneficial owner), Feishang
Copper and by Anhui Wuhu Port Storage and Transportation Co. Ltd.,
a related party through common control by Mr. Li Feilie. The
primary borrower under the loan agreements is Shenzhen Feishang
Enterprise Co. Ltd. ("Shenzhen Feishang"), a related party through
common control by Mr. Li Feilie. Shenzhen Feishang has agreed to
serve as primary borrower in order to meet the bank's lending
policies, and will disburse the loan for use by Feishang Copper.
Mr. Feilie Li, the Company's Chairman, commented on the loan:
"Following the PRC government's unveiling of a RMB4 trillion
economic stimulus package in November 2008, it is generally
expected that the prospects for the PRC copper market will soon be
revived. This loan, which bears a relatively lower interest cost,
signifies the bank's recognition of the Company's copper smelting
business and relatively low debt position. We will continue our
acquisitions strategy in coal and non-ferrous metal/ iron
projects." For the convenience of the reader, amounts in Renminbi
("RMB") have been translated into United States dollars ("US$") at
the rate of US$1.00=RMB6.8319 quoted by The People's Bank of China
as at June 30, 2009. The RMB is not freely convertible into foreign
currencies and no representation is made that the RMB amounts could
have been, or could be, converted into US$ at that rate, or at all.
This press release includes forward-looking statements within the
meaning of federal securities laws. These forward-looking
statements are based upon assumptions believed to be reliable, but
involve risks and uncertainties that may cause actual results of
operations to differ materially from the forward-looking
statements. Among the risks and uncertainties that could cause our
actual results to differ from our forward-looking statements are
our intent, belief and current expectations as to business
operations and operating results of the Company, uncertainties
regarding the governmental, economic and political circumstances in
the People's Republic of China, risks and hazards associated with
the Company's mining activities, uncertainties associated with ore
reserve estimates, uncertainties associated with metal and coal
price volatility, uncertainties associated with the Company's
reliance on third-party contractors and other risks detailed from
time to time in the Company's Securities and Exchange Commission
filings. Although the Company's management believes that the
expectations reflected in forward-looking statements are
reasonable, it can provide no assurance that such expectations will
prove to be accurate. DATASOURCE: China Natural Resources, Inc.
CONTACT: Edward Wong, Chief Financial Officer, China Natural
Resources, Inc., 011-852-2810-7205,
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