CNMC provides $90 million to China Nonferrous Gold Limited for construction, operations, and management of the Pakrut Gold Project (Linked to Project ID#54361, #70174, #70220, #70319, #70324, #70354, #70367, #70407)

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 (as captured via 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 (as captured via 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 (as captured via 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 (as captured via 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 (as captured via Project ID#70367). Then 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 (as captured via Project ID#70407). Then, on February 8, 2018, CNMC International Capitals Company Limited and China Nonferrous Gold Limited signed a deal for a loan facility of $90 million (captured via Project ID#70430), which was fully drawn down full on February 9, 2018. This loan was reportedly intended to pay the $30 million of outstanding debt with the Macau Branch of the China Construction Bank Corporation and $30 million of the outstanding debt with CNMC International. The remainder of the loan was to pay for the restoration of production at Pakrut, including the purchase of equipment, the completion of a ventilation system, a tailings pond, and a back-fill station. CNG reported that the loan's purpose was for the construction, operations and management of the Pakrut Gold Project, including operating and related expenses. The loan period per the contract was from February 9, 2018 to December 8, 2020. The interest was fixed at 5.8% per annum, which was calculated on a half yearly basis from the 21st of December to the 20th of June, and from the 21st of June to 20th of December. Payment of interest were to be made biannually in June and December of each year. If the loan is used for a purpose other than that stated in the contract, the proportion of the loan used was to incur interest at a fixed rate of 11.6% per annum. At the repayment date, interest was to be charged at 8.7% rate on any unpaid balance. 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 吉克斯坦帕克鲁特金矿.

Number of official sources

17

Number of total sources

23