China Development Bank provides $1.175 billion loan to Taurus Mineral Ltd. to acquire Hushan Uranium Mine (Linked to Record ID#1425, #30396, #68595)

Project narrative

On January 30, 2012, China Development Bank (CDB) signed a $2.115 billion loan agreement with Taurus Mineral Limited, of which $1.175 billion was used to acquire the Hushan uranium mine (湖山鈾礦) from Extract Resources (Pty) Ltd. Taurus Mineral Limited is a subsidiary 100%-owned by Miraculum Mineral Limited, a joint venture between China General Nuclear Power Corporation Uranium Resources Company (CGNPC-URC) (60%) and China-Africa Development (CAD) Fund (40%). CGNPC-URC is a wholly owned subsidiary of China Guangdong Nuclear Power Group and CADFund is an equity investment fund 100%-owned by China Development Bank Corporation. Extract Resources (Pty) Ltd is an Australian company that owned Swakop Uranium (Pty) Ltd, a project company that it established to explore, evaluate, develop, and produce uranium oxide at the Husab Uranium Mine. On January 30, 2012, China General Nuclear Power Corporation signed a 'contract of guaranty' with China Development Bank providing guarantee for following expenses: (a) 60% of the outstanding principal under the main contract, and (b) corresponding principal, interest, default interest, compensation, liquidated damages, damage awards and any other payments that the borrower owes to the lender based on main contract and other reasonable expenses to protect the creditor's rights. As of December 31, 2016, the outstanding principal amount under Taurus Mineral Limited's $2.115 billion loan CDB loan was $1,932,644,095.92. Taurus Mineral Ltd. made an official acquisition offer to Extract Resources (Pty) Ltd on February 14, 2012. Then, on April 13, 2012, Extract Resources (Pty) Ltd announced that its securities would be removed from the official list of ASX Limited, meaning that Taurus Mineral Limited had successfully acquired a 98.37% ownership stake Extract Resources (Pty) Ltd (and by extension the Hushan uranium mine). After Taurus Mineral Ltd became the majority shareholder in Extract Resources (Pty) Ltd and thus the majority shareholder in Swakop Uranium (Pty) Ltd, it provided a $214,920,326 loan — through Extract Resources (Pty) Ltd -- to Epangelo Mining Company (a Namibian state-owned company) to facilitate its acquisition of a 10 percent stake in the Husab Uranium Mine. The loan agreement was finalized in November 2012 and its face value was increased to $258,920,326 in 2015. The loan carries a 15 year maturity and an interest rate of 6-month LIBOR plus a 6% margin. It is to be repaid by Epangelo Mining Company with future dividends from the Husab Uranium Mine Development Project over a 15 year period. The purpose of the Husab Uranium Mine Development Project (also known as the Husab Uranium Project) is to make Namibia the second largest uranium producer in the world. Record ID#61252 captures the $1.175 billion loan from CDB. Record ID#30396 captures the $258,920,326 loan from Taurus Mineral Limited via Extract Resources (Pty) Ltd.