CNMIM provides RMB 530 million loan for Pakrut Gold Project (Linked to Project ID#54361, #70174, #70220, #70324, #70354, #70367, #70407, #70430)

On May 24, 2012, China Nonferrous Metals International Mining Co. Ltd (CNMIM) and Kryso Resources PLC signed a Shareholder Loan Agreement for a loan made on commercial terms to Kryso Resources PLC — the mineral exploration and development company developing the Pakrut Gold Project. The secured loan facility consisted of two tranches; a tranche for RMB 530 million and a tranche for $10 million USD. It was to be used exclusively for the design, construction, operation and administration of the Pakrut Gold Project, including operating costs, capital expenditure, and general working capital. The RMB tranche was disbursed by CNMIM entering into contracts with third parties on behalf of Kryso or LLC Pakrut as their agent and transferring amounts to the bank accounts of such parties. The term of the loan went from the date of the first advance until May 31, 2017. The annual fixed interest rate was 9% for both tranches and a management fee at 0.5% on the total amount of the loan was paid within 30 days of the first advance. Default interest of 13.5% per annum was payable on overdue amounts on the tranches. The borrower was expected to repay all amounts of principal and interest in respect in USD at the fixed exchange rate of $1 USD to 6.30 RMB. The repayment dates were May 31, 2015, November 11, 2015, May 31, 2016, November 11, 2016, and May 31, 2017 for both tranches. November 30, 2014 was the end of the loan availability period. Kryso had drawn down RMB 384,802,696 (equivalent to $61,079,793 USD at the fixed repayment exchange rate) under the RMB tranche. Kryso pledged its 100% equity interest in LLC Pakrut to CNMIM as security (collateral) for repayment of the loan. Project ID#70319 captures the RMB tranche and Project ID#70174 captures the USD tranche. 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. 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. In November 2011, the Government of the Republic of Tajikistan issued a mining license to LLC Pakrut. Construction started in September 2012. The mine 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 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. 2. 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.

Number of official sources

15

Number of total sources

21