China Nonferrous Gold agrees loan extensions

Tajikistan-focussed mineral exploration and mining company China Nonferrous Gold has extended the repayment period for loans in place with CNMC Trade Company, it announced on Wednesday, totalling $146.5m (£115.94m).

The AIM-traded firm said it has total debt facilities, including banking facilities, of around $341m at the current time.

As it announced on 9 April, the company had been in discussions to agree a formal extension of its facilities with CNMC Trade, as the loans were due for repayment.

The first loan, of $120m, was due to be repaid on 20 December 2019 but, in support of the company's business, China Nonferrous said conversations had been progressing for an extension.

“It is now agreed that the repayment date for this loan will be extended to 20 December 2020,” the board said in its statement.

The second loan, of $6.5m, was due to be repaid on 20 December 2019, but had been informally extended on a month-to-month basis.

It was now agreed that the repayment date would be extended to 20 December 2020.

Finally, a loan of $20m was due to be repaid on 26 November 2019, but had also been informally extended on a month-to-month basis.

It was now agreed that the repayment date would be extended to 26 November 2020.

Annual interest was unchanged on all three loans, at 3.7% over six-month LIBOR, with interest payable on 30 June and 31 December each year.

“The company continues to engage with commercial banking partners to explore a wider refinancing of the business and will update shareholders in due course,” the board said in its statement.

At 1118 BST, shares in China Nonferrous Gold were up 10.04% at 13.7p.