Industrial and Commercial Bank of China (Macau) provides $120 million loan for Pakrut Gold Project (Linked to Project ID#54361, #70174, #70319, #70324, #70354, #70367, #70407, #70430)

In 2012, China Nonferrous Metals International Mining Co. Ltd (CNMIM) provided a secured loan facility on commercial terms to Kryso Resources PLC — the mineral exploration and development company developing the Pakrut Gold Project — for $10 million and RMB 530 million to finance the development of the Pakrut Gold Project (see linked Project ID#70174 and #70319). In July 2010 CNMIM took a 30 percent stake in Kryso with an £11 million investment. As part of the deal, CNMIM also agreed to help fund Kryso. Under the agreement, CNMIM was also contractually obligated secure debt funding for the Pakrut project. Then, on June 19, 2014, Industrial and Commercial Bank of China (Macau) Limited provided a $120 million term loan facility to China Nonferrous Mining Group for the Pakrut Gold Project. The loan was secured by standby letters of credit. The loans advanced under the facility could not exceed 95% of the value of the standby letters of credit. Standby letters of credit were issued on June 24, 2014 and June 18, 2015 in order to enable China Nonferrous Mining Group to drawdown $80 million and $40 million respectively under the facility. The principal loan repayments commenced on January 30, 2016. As of December 31, 2015, China Nonferrous Mining Group had fully drawn down the loan facility extended. The loan availability period ran from July 9, 2014 until June 19, 2015. If the facility was not fully drawn down within the loan availability period, the principal repayments were to be reduced in inverse order of the repayment schedule. In the event of default, ICBC had the right to demand full repayment of the outstanding loan and charge default interest at 3% over the contracted interest rate. The loan was secured by China Nonferrous. The interest rate on the loan was 2.90% per annum over the quarterly (3-month) LIBOR rate (average 3-month LIBOR rate in June 2014 was 0.231%). Therefore, the interest rate was coded as 2.90+.231=3.131%. The loan was repayable in USD. The principal loan repayment commenced on January 30, 2016. The repayment schedule was as follows, denominated in USD: - January 30, 2016 – $5,000,000 - July 30, 2016 – $10,000,000 - January 30, 2017 – $10,000,000 - July 30, 2017 – $15,000,000 - January 30, 2018 – $20,000,000 - July 30, 2018 – $20,000,000 - January 30, 2019 – $20,000,000 - June 8, 2019 – $20,000,000 LLC Pakrut, a mine that is 100% owned by Kryso Resources Ltd, operates the Pakrut deposit located on the southern slope of the Gissar range, 112 km from the city of Dushanbe. Relevant geological exploration at the Pakrut deposit began in 2004. According to the 2018 report published on Bloomberg, in November 2011, the Government of the Republic of Tajikistan issued a mining license to LLC Pakrut. According to SRK, at a gold cut-off of 1.0 g/t, the JORC Code compliant Proved Ore Reserves for Pakrut were estimated at 15,721 thousand tonnes (“kt”) averaging 3.1 g/t of gold. The JORC Code compliant Probable Ore Reserves were estimated at 2,787 kt averaging 2.5 g/t of gold. Construction started in September 2012. The project went into production on June 5, 2016. In February 2017, high levels of snowfall caused significant damage to the facilities and equipment, and interrupted the construction, which was restarted in the second half of 2017. All construction work was expected to be completed in the fourth quarter of 2018 and production was expected to be recommenced in April 2018. Construction work was completed at the end of 2018.

Additional details

1. The Chinese project title is "塔吉克斯坦帕克鲁特金矿.

Number of official sources

15

Number of total sources

20