China Construction Bank provides $100 million loan to refinance 2012 CNMIM loan to China Nonferrous Gold Limited for Pakrut Gold Project (Linked to Project ID#54361, #70174, #70220, #70319, #70324, #70354, #70407, #70430)

On May 24, 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). 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 (see linked Project ID#70220). Then, on May 6, 2016, China Nonferrous Mining Group obtained a loan facility $120 million from CNMC International Capitals Company Limited (“CNMC”)— an associate of CNMIM — to refinance the loan facility that it contracted with Industrial and Commercial Bank of China (Macau) Limited on June 19, 2014 for the Pakrut Gold Project (see linked Project ID#70324). On June 27, 2016, the China Nonferrous Mining Group obtained another loan, worth $19,114,809, from CNMIM for working capital purposes related to the Pakrut Gold Project (see linked Project ID#70354). Then, on July 1, 2016, China Construction Bank Corporation Macau Branch (CCBC) provided a loan facility of $100 million to China Nonferrous Mining Group to refinance its 2012 loan agreement with CNMIM (see linked Projects IDs #70174 and #70319) and also for working capital purposes. The CCBC loan was for a maximum of 5 years (5-year maturity) and was repayable 60 months from the date of first drawdown. The annual interest rate was 3-month LIBOR plus a 2.1% margin. The average 3-month LIBOR rate in July 2016 was 0.696%. Therefore, the interest rate was coded as 0.696+2.1=2.796%. According to "CNG: China Nonferrous Gold Limited: Annual Report and Account" published on July 1, 2019, the loan was secured by Standby Letter(s) of Credit issued by China Construction Bank Corporation, Beijing Branch, and guaranteed by CNMC under the terms of the loan agreement, for an aggregate amount of not less than $103,092,783.51 USD, with validity of not less than 60 months in favor of CCB. The loan was fully drawn down in 2016. The loan was repayable in 8 installments commencing 18 months from the drawdown date. The repayment schedule was as follows, denominated in USD (taken from "CNG: China Nonferrous Gold Limited: Annual Report and Account" on Bloomberg): - December 31, 2017 – $5,000,000 (payment made in January 2018) - June 30, 2018 – $5,000,000 - December 31, 2018 – $5,000,000 - June 30, 2019 – $5,000,000 - December 31, 2019 – $5,000,000 - June 30, 2020 – $5,000,000 - December 31, 2020 – $5,000,000 - June 30, 2021 (or 14 working days prior to the expiry date of relevant Standby Letter(s) of Credit – whichever is earlier) LLC Pakrut, a mine that is 100% owned by Kryso Resources Ltd, was first established in 2003 and it operates the Pakrut deposit located on the southern slope of the Gissar range, 107 km from the city of Dushanbe. The geological exploration at Pakrut deposit started in 2004. The pre-gold reserves at the deposit, approved by the State Reserves Committee (CRC) of the Republic of Tajikistan, were 28.1 tons. The reserves of Pakrut gold mine are currently estimated to be 100 tons. In November 2011, the Government of the Republic of Tajikistan issued a mining licence to LLC Pakrut. 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.

Additional details

1. The Chinese project title is 塔吉克斯坦帕克鲁特金矿. 2. AidData has recorded this refinancing of official sector Chinese debt without transaction amounts to avoid double counting.

Number of official sources

15

Number of total sources

20