CNG China Nonferrous Gold Limited

TIDMCNG 
 
 

China Nonferrous Gold Limited

("CNG" or the "Company")

Execution of Short-term Loan Agreement

China Nonferrous Gold Limited (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to provide the following update:

Short-term Loan from CNMC Trade Company Limited

On 9 June 2023, the Company executed a loan agreement with CNMC Trade Company Limited ("CNMC Trade") for a loan of up to USD $65 million (the "CNMC Loan"). The CNMC Loan will be used to repay the existing Bank of Shanghai (Hong Kong) Limited ("BOS") loan facility of USD $65m, which is due for repayment on 09(th) June 2023 (see announcement dated 23 June 2021 for further details).

The CNMC Loan is repayable within 3 months from the date of drawdown. The key terms of the CNMC Loan are that it is unsecured and interest is charged monthly at 0.5% over 3 month US LIBOR. There are no extra fees payable to CNMC Trade for this arrangement.

Approximately US$65 million (all) of the CNMC Loan was drawn down immediately.

Summary of Current Financial Position

At the current time, excluding the new loan outlined above, loans drawn down by the Company amount to c. USD$316.08 million, this includes US$65m of banking facilities (unaudited).

Related Party Transaction

The Company's major shareholder is China Nonferrous Metals International Mining Co., ltd ("CNMIM"), which holds 38% of the issued share capital of the Company and China Non-ferrous Mining Corporation ("CNMC") is the major shareholder of CNMIM and CNMC Trade. Accordingly, CNMC Trade is deemed to be a related party of the Company under the AIM Rules for Companies.

The directors of the Company with the exception of (i) Yu Lixian who is a director of certain CNMC subsidiaries; (ii) Feng Zhishuo who is the vice director of Enterprise Development of CNMIM, and (iii) Wang Xiaohua who is a director within the Finance Department of CNMIM, consider that having consulted with WH Ireland, the Company's nominated adviser, the terms of the CNMC Loan agreement are fair and reasonable insofar as the Company's shareholders are concerned.

For further information please visit the Company's website (www.cnfgold.com) or contact:

China Nonferrous Gold Limited

Feng Zhishuo, Managing Director

Tel: +86 10 8442 6627

WH Ireland Limited (NOMAD & Broker)

Katy Mitchell, Andrew de Andrade

Tel: +44 (0)207 220 1666

BlytheRay (PR)

Tim Blythe, Megan Ray

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20230611706238/en/

 
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China Nonferrous Gold Limited

 
    SOURCE: China Nonferrous Gold Limited 
Copyright Business Wire 2023 
 

(END) Dow Jones Newswires

June 12, 2023 02:00 ET (06:00 GMT)

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