China Nonferrous Gold Loan Amendment
June 01 2017 - 7:09AM
UK Regulatory
TIDMCNG
China Nonferrous Gold Limited
("CNG" or the "Company")
LOAN AMENDMENT
China Nonferrous Gold Limited ?????????? (AIM: CNG), the mineral
exploration and mining company currently mining the Pakrut gold
project in the Republic of Tajikistan, announces that it has today
entered in to an amendment agreement with China Nonferrous Metals
Int'l Mining Co., Ltd. ("CNMIM") the Company's 38.36% shareholder,
in relation to the secured loan facility signed with CNMIM in May
2012 (the "2012 CNMIM Facility").
As announced on 1 July 2016, the Company secured a $100 million
facility with China Construction Bank Corporation Macau Branch
which was used to repay $69.5 million of the $81.2 million drawn
under the 2012 CNMIM Facility and for working capital purposes. The
balance of the 2012 CNMIM Facility, being $11.7 million, was
retained to add further financial flexibility.
Due the impact of the recent avalanches, as previously
announced, production at the Company's mine is currently suspended
and therefore CNG is unable to repay the amounts outstanding under
the 2012 CNMIM Facility from cash flows. As a result, the Company
has entered into an amendment agreement with CNMIM to extend the
term of the 2012 CNMIM Facility loan by 5 years to 31 May 2022. All
other terms including the pledge remain unchanged and as set out in
the announcement of 25 May 2012.
Production at the Pakrut gold mine is not expected to return to
normal levels until the fourth quarter of 2017, as a result the
Company is also in discussions with CNMC International Capitals
Company Limited, an associate of CNMIM, regarding its loan facility
of USD$120 million (under which $120million was drawn as at 30
April 2017) and is repayable on 31 December 2018. The Company's
facility with China Construction Bank Corporation Macau Branch
under which $100 million was drawn as at 30 April 2017, is
repayable 60 months from first draw down which occurred on 30 June
2016. The Company is monitoring its financial position in light of
the avalanche and lack of production and will continue to update
shareholders in due course. As at 30 April 2017 the Company
retained $8.8 million of cash on the balance sheet.
As CNMIM is a substantial shareholder in the Company pursuant to
AIM Rule 13, the amendment of the terms of the 2012 CNMIM Facility
is deemed to be a related party transaction. The Company's board of
directors (excluding Wu Xiang and Weili (David) Tang, who are
appointees of CNMIM) considers, having consulted with CNG's
Nominated Adviser, Investec Bank plc, that the amendment of the
terms of the 2012 CNMIM 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) or contact:
China Nonferrous Gold Limited
David Tang, Managing Director
Tel: +86 10 8442 6681
Investec Bank Plc
Jeremy Ellis, George Price
Tel: +44 (0)20 7597 5970
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0)20 7382 8300
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
Project Summary
The Pakrut gold project, of which CNG has 100 per cent
ownership, is situated in Tajikistan approximately 120km 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 Organisation. Tajikistan hosts numerous
operating precious metal mines as well as the largest aluminium
smelter in Central Asia. CNG's management team has extensive
experience in the mining industry in Tajikistan.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20170601005741/en/
This information is provided by Business Wire
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June 01, 2017 07:09 ET (11:09 GMT)
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