CNG China Nonferrous Gold Limited

TIDMCNG 
 
 

China Nonferrous Gold Limited

("CNG" or the "Company")

Gold Dore Sale 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 announce that the Company has authorized its subsidiary, LLC Pakrut, to enter into a Gold Doré sale agreement with Daye Nonferrous Metals Company Limited ("Daye Nonferrous" or the "Buyer"), for the sale of up to 300kg of Gold Doré ("Sale Agreement").

The Sale Agreement supplements the agreements with the Tajikistan Government which collectively covers the majority of gold anticipated to be produced at Pakrut for this calendar year. In 2020 the Company produced a total of 1,126kg of gold bullion which was sold to the Tajikistan government on similar terms.

The terms of this Sale Agreement remain in force until 31 December 2021, after which the contract may be renewed. The Gold Doré to be sold under this agreement is to be produced at the Company's Parkrut gold mine in Tajikistan and gold purity is to be at, or above, 99.95% with each bar weighing approximately 400oz.

The London Bullion Market Association's Precious Metal's Gold Price in USD (as published in the London Metal Bulletin on the collection date of the Buyer's nominated carrier) is to be used to set the settlement price. At today's price of US$1,823 per ounce the total contract, if fulfilled in its entirety, would represent a total consideration of approximately US$17m. The Company can apply for provisional payment of up to 95% of the contained Au, one business day after the Gold Doré being collected by the Buyer's nominated carrier.

Related Party Transaction

Daye Nonferrous is subsidiary of China Nonferrous Metals Mining (Group) Co., Ltd ("CNMC Group") which is also the parent company of China Nonferrous Metals Int'l Mining Co., Ltd ("CNMIM"), the substantial shareholder of the Company. Accordingly, the Gold Dore sales transaction is deemed to be related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies. The Company's board of directors (excluding Yu Lixian, Zhang Hui and Wang Xiaohua, who are connected to CNMIM) consider, having consulted with CNG's Nominated Adviser, WH Ireland Limited, that the terms of the Sale Agreement 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

Zhang Hui, Managing Director

Tel: +86 10 8442 6662

WH Ireland Limited (NOMAD & Broker)

Katy Mitchell, James Sinclair-Ford

Tel: +44 (0)207 220 1666

Blytheweigh (PR)

Tim Blythe

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/20210907005499/en/

 
    CONTACT: 

China Nonferrous Gold Limited

 
    SOURCE: China Nonferrous Gold Limited 
Copyright Business Wire 2021 
 

(END) Dow Jones Newswires

September 07, 2021 07:41 ET (11:41 GMT)

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