China Nonferrous Gold secures new $65m loan facility

12th Jun 2023 13:17

(Sharecast News) - Tajikistan-focussed explorer and miner China Nonferrous Gold has secured a short-term loan from CNMC Trade Company, it announced on Monday, amounting to $65m.

The AIM-traded firm said the purpose of the loan was to repay an existing facility provided by the Bank of Shanghai - Hong Kong.

It said the BOS facility, initially taken on 23 June 2021, required repayment by 9 June 2023.

China Nonferrous Gold said it had successfully executed the loan agreement with CNMC Trade to meet that repayment deadline.

Under the terms of the CNMC loan, the company was required to repay the borrowed amount within three months from the date of drawdown.

Interest on the CNMC loan will be charged on a monthly basis at a rate of 0.5% above the three-month US LIBOR, with no additional fees payable to CNMC Trade for facilitating the arrangement.

China Nonferrous Gold said the entire sum of $65m was drawn down immediately on execution of the loan agreement.

"At the current time, excluding the new loan, loans drawn down by the company amount to $316.08m," the board said in its statement.

"This includes $65m of banking facilities, unaudited."

At 1003 BST, shares in China Nonferrous Gold were down 5.6% at 1.6p.

Reporting by Josh White for Sharecast.com.