LONDON (ShareCast) - (Sharecast News) - China Nonferrous Gold, a mineral exploration and mining company currently operating the Pakrut gold project in Tajikistan, updated the market on its financial challenges on Wednesday as it grappled with demands from its creditor CNMC Trade.

The firm said CNMC Trade had informed it that it would not extend the loan of $14.55m, initially dated 12 July 2023 and set to expire on 31 December 2023.

Instead, CNMC Trade was demanding immediate repayment of the new outstanding loan, and expressed no intention to grant an extension.

Additionally, CNG said CNMC Trade also demanded the immediate repayment of a previous outstanding loan totalling $206.1m, announced on 22 December, along with the new outstanding loan of $14.55m, including interests and related costs.

The total amount now due to CNMC Trade stood at $220.65m.

China Nonferrous Gold said it held a cash balance of just $3.79mi, while it carried loans of $314m, all of which would be due for repayment in the next 12 months.

The company said it was facing a severe liquidity challenge and did not have adequate cash resources to meet the demands made by CNMC Trade.

Additionally, its directors expressed doubts about their ability to secure additional funds within the specified timeframe.

In response, the directors were in communication with CNMC Trade to explore potential solutions and a way forward for China Nonferrous Gold.

The board said further updates on the situation would be provided as appropriate.

Reporting by Josh White for Sharecast.com.

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