LONDON (ShareCast) - (ShareCast News) - China Nonferrous Gold, the Tajikistan-focused mineral explorer, has agreed a loan facility with the China Construction Bank Corporation for up to $20m to fund operations.
The company said the loan facility, expected to be drawn down soon and used for working capital to fund the restoration of production at the Pakrut gold mine, would be for a maximum of one year and repayable 12 months from first drawdown, inclusive of an annual interest rate at 1.3% and a three month LIBOR governed by the law of Macau.

It will be pegged by a standby letter of credit from CCBC Beijing Branch, for the aggregate amount of $20.6m expiring in 12 months from the date of first draw-down, for a fee of 1.15% per annum.

The company also said it continued to engage in discussions regarding wider refinancing of the business, "required in the near-term" to repay a $20m loan from CNMC International Capitals Company, the AIM company's 38.36% shareholder, due on 26 November 2017.

Other loans from CNMC include $6.5m in three tranches, with $1m repayable on 15 December, $4m due on 23 December and $1.5m on 19 January 2018.

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