Execution of Bridging Loan Agreement

Execution of Bridging Loan Agreement

China Nonferrous Gold Limited

China Nonferrous Gold Limited 中

(“CNG” or the “Company”)

Execution of Bridging Loan Agreement

Update on COVID 19

China Nonferrous Gold Limited 中 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to provide the following update:

Bridging Loan from CNMC Trade Company Limited

The Company has today executed a loan agreement with CNMC Trade Company Limited (“CNMC Trade”) for a loan of up to USD $34.55 million (the “CNMC Loan”). This CNMC Loan will be used to repay the existing China CITIC Bank Corporation Limited (“CITIC”) bank facilities of USD $34.55m (being USD20m advanced in January 2021 (“First Loan”) and USD14.55m advanced in March 2021 (“Second Loan”), as set out in the announcements dated 22 January 2021 and 8 March 2021). It has been agreed that as soon as the facilities are repaid CITIC will enter into a new loan with the Company, and a further announcement will be made in due course to confirm the same.

The total amount of the CNMC Loan is USD 34.55m with 3% fixed annual interest rate. The maturity date of this loan is the 30th day after the actual drawdown date. There are no other fees payable to CNMC Trade under this CNMC Loan.

Approximately US$20m of the CNMC Loan will be drawn down today and repaid to CITIC bank to repay the First Loan and a further US$14.55m will be drawn down shortly to repay the Second Loan.

The Company will repay the total amount of the CNMC Loan as soon as the new CITIC loan is entered into. The Directors advise that the requirement to repay an existing loan before a new loan is taken out is not an unusual condition of Chinese commercial banking.

Additional Information

Whilst the Pakrut Gold Mine Project continues to progress well but the Company still needs to service the outstanding loans, expand operations and work on efficiencies at site.

Summary of Current Financial Position

At the current time, excluding the new CNMC Loan, loans drawn down by the Company amount to c. USD$319 million, this includes US$99.55m of banking facilities (unaudited).

COVID 19 (Omicron) Update

The Company confirms that they have taken appropriate steps to ensure that staff at protected at site, and that to date operations at the mine site at Pakrut continue as normal. Further updates will be provided if the situation changes.

Related Party Transaction

The Company’s major shareholder is China Nonferrous Metals International Mining Co., ltd (“CNMIM”), which holds 38% of the issued share capital of the Company and China Non-ferrous Mining Corporation (“CNMC”) is the major shareholder of CNMIM and CNMC Trade. Accordingly, CNMC Trade is deemed to be a related party under the AIM Rules.

The directors of the Company with the exception of (i) Yu Lixian who is the chairman of the board of CNMIM and; (ii) Zhang Hui who is CEO of CNMIM, and (iii) Wang Xiaohua who is the director of Finance Department of CNMIM, consider that having consulted with WH Ireland, the Company’s nominated adviser, the terms of the CNMC Loan agreement are fair and reasonable insofar as the Company’s shareholders are concerned.

For further information please visit the Company’s website (www.cnfgold.com) or contact:

China Nonferrous Gold Limited
Zhang Hui, Managing Director
Tel: [phone]

WH Ireland Limited (NOMAD & Broker)
Katy Mitchell, Andrew de Andrade
Tel: [phone]

Blytheweigh (PR)
Tim Blythe
Tel: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005411/en/