Skyland Mining (BVI) Limited provides $30 million loan for Kuru-Tegerek Copper and Gold Resources Development Project

Project narrative

In January 2012, China National Gold Group Co., Ltd. (formerly known as China National Gold Group Corporation) acquired a 100% ownership stake in Kuru-Tegerek Copper-Gold deposit via Kichi-Chaarat Closed Joint Stock Company. Then, in January 2013, China National Gold Group Co., Ltd. sold a 16% ownership stake in Kichi-Chaarat Closed Joint Stock Company to China CAMC Engineering Hong Kong Co Ltd. On September 13, 2016, Skyland Mining (BVI) Limited entered into a $30 million loan agreement with Kichi-Chaarat Closed Joint Stock Company (Kichi Chaarat CISC) — a special purpose vehicle and joint venture of China National Gold Group Corporation (CNGC) [84% ownership stake] and China CAMC Engineering Hong Kong Co Ltd [16% ownership stake] that is legally incorporated in the Kyrgyz Republic — for the Kuru-Tegerek Copper and Gold Resources Development Project. The loan's original maturity date was July 10, 2017. However, on July 31, 2017, the maturity of the loan from Skyland Mining (BVI) Limited was extended from July 10, 2017 to July 31, 2017 and the was fully settled on July 31, 2017. On July 24, 2017, China Eximbank signed a loan agreement with Kichi-Chaarat Closed Joint Stock Company for the Kuru-Tegerek Copper and Gold Resources Development Project. No sovereign guarantee was provided by the Government of the Kyrgyz Republic in support of the loan. The total cost of the project was $220 million; however, the face value of the China Eximbank loan that supported the project is unknown. The purpose of the project was to develop the Kuru-Tegerek copper and gold mine in Chatkal district and the Jalal-Abad oblast of Kyrgyzstan. Upon completion, the mine was expected to have an annual processing capacity of about 1.8 million tons, including an annual output of 11,000 tons of copper, 600 kg of gold and 4.6 tons of silver. The annual sales income from the mine was expected to be $100 million. The mine was also expected to be the largest copper-gold mine and the largest underground mine in Kyrgyzstan. Construction began in 2014 and the mine was officially put into operation (production) on August 14, 2019. The project reportedly generated 74 jobs for Chinese employees and 347 jobs for Kyrgyz employees.