China Construction Bank provides $20 million loan to China Nonferrous Gold Limited for working capital and restoring the production of Pakrut Gold Project (Linked to Project ID#54361, #70174, #70220, #70319, #70324, #70354, #70367, #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 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 #70367). It was announced on October 30, 2017 that China Construction Bank Corporation Macau Branch agreed to provide China Nonferrous Gold with a loan facility of up to $20 million. The loan facility was for a maximum of one year and repayable 12 months after the first drawdown. The loan included an annual interest rate of 1.3% plus 3-month LIBOR and was governed by the law of Macau. The average 3-month LIBOR rate in October 2017 was 1.361%. Therefore, the interest rate was coded as 1.361+1.3=2.661%. The facility was secured by a standby letter of credit from China Construction Bank Corporation Beijing Branch, for the aggregate amount of $20,618,556.70, which expired 12 months after the date of first drawdown (1-year maturity). A standby letter of credit fee of 1.15% was payable per annum. The CCBC Loan was expected to be drawn down shortly after its signing and was to be used for working capital and to fund the restoration of production of the Pakrut gold mine. 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. This mining project is located in Vahdat District, Republic of Tajikistan, about 80 km northeast (“NE”) in a straight line (112 km by road) from Dushanbe, the country’s capital city. It sits on the southern slope of the Gissar range. More detailed locational information can be found at http://www.cnfgold.com/Managed/Resources/docs/Downloads/srk_report.pdf.

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