CHINA NONFERROUS GOLD: Extension of Procurement Agreement
September 11 2020 - 2:13AM
UK Regulatory
TIDMCNG
China Nonferrous Gold Limited
("CNG" or the "Company")
Extension of Procurement Agreement
China Nonferrous Gold Limited (AIM: CNG), the mineral
exploration and mining company currently mining the Pakrut gold
project ("Pakrut project") in the Republic of Tajikistan, is
pleased to announce that Kryso Resources Limited, a wholly owned
subsidiary of the Company, has extended the procurement agreement
(the "Agreement") with China Nonferrous Metals International Mining
Co. Ltd ("CNMIM"), the Company's 38.36% shareholder, previously
announced on 8 February 2018.
Under the agreement which CNMIM will continue to act as agent
for Kryso Resources Limited to procure equipment, spare parts and
other materials required for the Pakrut project. All terms will
remain the same as the original agreement (see announcement dated
25 May 2016) save for the total amount to be procured will be
limited to US$8 million.
As with the previous agreement, Kryso Resources Limited will
retain the final decision in relation to the purchasing of all
goods and for acting as agent for LLC Pakrut, CNMIM will also
continue to be paid a commission of 5% on all goods procured. The
Agreement, governed by the law of China, is valid until January 1,
2023.
Yu Lixian, Managing Director of CNG, commented:
"We are pleased to have re-signed this agreement with CNMIM, it
will allow the Company to continue to benefit from CNMIM's
purchasing power and increase our supply options."
Related Party Transaction
CNMIM is a substantial shareholder of the Company and, as a
result, pursuant to AIM Rule 13, the entry into the Agreement with
CNMIM is deemed to be a related party transaction. The Independent
Directors of the Company namely Shi Xiuzhi and Li Yong consider,
having consulted with CNG's Nominated Adviser, WH Ireland, that the
terms of the Agreement are fair and reasonable insofar as the
shareholders of CNG are concerned.
For further information please visit the Company's website
(www.cnfgold.com) or contact:
China Nonferrous Gold Limited
Yu Lixian, Managing Director
Tel: +86 10 8442 6681
WH Ireland Limited
Katy Mitchell/James Sinclair-Ford
Tel: 0207 220 1666
Blytheweigh
Tim Blythe, Camilla Horsfall
Tel: +44 (0)20 7138 3224
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200910006094/en/
CONTACT:
China Nonferrous Gold Limited
SOURCE: China Nonferrous Gold Limited
Copyright Business Wire 2020
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