LONDON – (BUSINESS WIRING) –
China Nonferrous Gold Limited 中国 有色 黄金 有限公司
(“KNG” or “Company”)
Conclusion of a new loan agreement
Update on COVID 19
China Nonferrous Gold Limited 中国 有色 黄金 有限公司 (AIM: CNG), an exploration and production company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to provide the following update:
Bank Line from Bank of Shanghai (Hong Kong) Limited
The Company today signed an agreement with Bank of Shanghai (Hong Kong) Limited (“BOS”) for a credit facility of up to US $ 65 million (“BOS Loan”). The credit line is valid for a maximum of 24 months and is repayable in 24 months from the date of drawdown. The terms of the BOS loan include an annual interest rate of 1.30% plus three months LIBOR.
It was separately agreed (as a separate agreement) that the credit line would be guaranteed by a stand-by letter of credit from China Nonferrous Metal Mining (Group) Co., Ltd (“CNMC”) (the “Guarantee”) for a total amount of USD 66 million, such a guarantee also expires 24 months from sampling date (“SBLC”). The total amount of loans cannot exceed 99% of the total value of SBLC at any time.
It was also agreed that 0.2% per annum of the total amount should be paid by the CNG as an organizational fee to BOS.
CNG does not charge CNMC any warranty fees.
The total BOS loan of USD 65 million is expected to be used by the end of the month to repay the CCBC Macau loan, of which USD 65 million remains outstanding (see Announcement July 1, 2016 for more details. This location ). The loan is repayable by the end of June 2021.
Summary of the current financial situation
Currently, with the exception of the BOS loan described above, the loans raised by the Company amount to c. US $ 328 million, including US $ 99.55 million in banking (unaudited).
COVID 19 Update
The directors confirm that they continue to take appropriate steps to ensure the protection of on-site personnel and that, to date, operations at the Pakrut mine continue as normal despite COVID 19. Further updates will be provided if the situation changes.
For more information visit the Company’s website (www.cnfgold.com) or contact:
China Nonferrous Gold Limited
Zhang Hui, Managing Director
Tel.: +86 10 8442 6662
WH Ireland Limited (NOMAD and broker)
Katie Mitchell, James Sinclair-Ford
Tel.: +44 (0) 207 220 1666
Tim Blythe, Camilla Horsfall
Tel.: +44 (0) 20 7138 3224
The company believes that the information contained in this announcement constitutes inside information in accordance with the Market Abuse Regulation (EU) No. 596/2014.
Category Code: MSCH
Serial number: 739839
Received time (offset from UTC): 20210623T095347 + 0100