VANCOUVER, July 17,
2014 /PRNewswire/ - China Gold International Resources Corp.
Ltd. (TSX: CGG; HKEx: 2099) (the "Company", the "Guarantor" or
"China Gold International Resources") is pleased to announce that
on July 17, 2014, the Company,
through its wholly-owned subsidiary, Skyland Mining (BVI) Limited
(the "Issuer"), and with the assistance of Joint Lead Managers as
defined in the previous news release dated July 10, 2014, has successfully completed the
issuance of bonds (the "Offer", or the "Bonds") in an aggregate
principal amount of US$500
million.
Referring to the previous news release dated
July 10, 2014, the Company informs
that all the conditions precedent to the issue of the Bonds as set
out in the Subscription Agreement have been satisfied. The Bonds
are expected to be listed on The Stock Exchange of Hong Kong
Limited on July 18, 2014.
The Bonds were issued at a price of 99.634%,
bearing a coupon of 3.50% per annum with a maturity date of
July 17, 2017 and were rated BBB- by
Standard & Poor's. The Bonds are unconditionally and
irrevocably guaranteed by the Company. The net proceeds of the
Offer will be used for working capital, capital expenditures and
general corporate purposes of the Company.
Mr. Bing Liu, CEO of the Company, noted that the
transaction was noteworthy on several accounts. Mr. Liu said
"This issue was the first US dollar denominated bond issue
supported by a company's credit rating outside of China in the history of the gold companies in
Asia Pacific Region. The financing costs were significantly lower
than the industry standard. The Offer was nearly 15 times
oversubscribed. The Offer generated the highest percentage of
subscription by European investors compared to other recent Chinese
corporate bond issues. We set a benchmark in the
international capital markets for others to follow."
The Bonds have not been sold, issued, delivered
or offered directly or indirectly in Canada or to, or for the benefit of, any
resident of Canada, or for others
to resale, directly or indirectly, in Canada or to, or for the benefit of, any
resident of Canada, except as
otherwise permitted under applicable Canadian laws and regulations.
An application was made to The Stock Exchange of Hong Kong Limited
for the listing of, and permission to deal in the Bonds by way of
debt issues to qualified professional investors only and such
permission is expected to become effective on July 18, 2014. The Bonds and the guarantee have
not been and will not be registered under the Securities Act and
may not be offered or sold within the
United States except in certain transactions exempt from, or
not subject to, the registration requirements of the Securities
Act. Furthermore, none of the Bonds were or will be offered
to the public in Hong Kong other
than to "professional investors" as defined in the Securities and
Futures Ordinance (Cap. 571) of Hong
Kong.
About China Gold International
Resources
China Gold International Resources Corp. Ltd. is
based in Vancouver, BC,
Canada and operates both
profitable and growing mines, the CSH Gold Mine in Inner Mongolia,
and the Jiama Copper-Gold Polymetallic Mine in Tibet Autonomous
Region of the People's Republic of
China. The Company's objective is to continue to build
shareholder value by growing production at its current mining
operations, expanding its resource base, and aggressively acquiring
and developing new projects internationally. The Company is listed
on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The
Stock Exchange of Hong Kong Limited (HKEx: 2099).
Cautionary Note About Forward-Looking
Statements
Certain information regarding China Gold
International Resources contained herein may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates,
plans, expectations, opinions, forecasts, projections, guidance or
other statements that are not statements of fact. Although China
Gold International Resources believes that the expectations
reflected in such forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to have been
correct. China Gold International Resources cautions that actual
performance will be affected by a number of factors, most of which
are beyond its control, and that future events and results may vary
substantially from what China Gold International Resources
currently foresees. Factors that could cause actual results to
differ materially from those in forward-looking statements include
market prices, exploitation and exploration results, continued
availability of capital and financing and general economic, market
or business conditions. The forward-looking statements are
expressly qualified in their entirety by this cautionary statement.
The information contained herein is stated as of the current date
and subject to change after that date.
SOURCE China Gold International Resources Corp. Ltd.