VANCOUVER, CANADA, November 3, 2015 - China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the 'Company' or 'China Gold International Resources') is pleased to announce that Tibet Huatailong Mining Development Corp. Ltd. ('Tibet Huatailong'), the Company's wholly-owned subsidiary, has entered into a Loan Facility agreement (the 'Loan Facility') with a syndicate of banks (the 'Lenders'), led by Bank of China (the 'Lead Manager') pursuant to which the Lenders agreed to lend to Tibet Huatailong the aggregate principal amount of RMB3.98 billion, approximately USD627 million.
In addition to the Lead Manager, the syndicate of banks consisted of Agricultural Bank of China, China Construction Bank and Bank of Tibet.
The timing and the amount of the drawdowns from the Loan Facility will be determined by the Company according to its actual needs. The Loan Facility is repayable in full by Tibet Huatailong to the Lenders on November 2029. Repayments will commence in May 2019. The drawdowns from the Loan Facility bear a floating rate of interest (the 'interest on the drawdowns') which is currently at 2.83% per annum. The People's Bank of China Lhasa Center Branch's interest rate (the 'bank's interest rate') serves as a benchmark for the interest on the drawdowns. The bank's interest rate is then discounted by 7 basis points (or 0.07%) to calculate the interest on the drawdowns. The proceeds from the Loan Facility are to be used for the development of the Company's Jiama Copper-Gold Polymetallic Mine (the 'Jiama Mine').
The Loan Facility is secured by the Jiama Mine's mining rights. The Loan Facility is subject to customary covenants for a transaction of this nature, including covenants with respect to overall indebtedness of Tibet Huatailong.
Mr. Bing Liu, the CEO and Executive Director of the Company, stated, 'This financing will enable us to successfully pursue the development of the Jiama Mine. Despite challenging market conditions, we are capable of raising sizable financing at low interest rates due to our impeccable reputation in the Chinese mining industry and the support of the Company's largest shareholder, China National Gold Group Corporation'.
Analysts, investors, media and general public are encouraged to visit the Company's website at www.chinagoldintl.com, The Stock Exchange of Hong Kong Limited's website at www.hkex.com.hk or SEDAR at www.sedar.com or contact the Company with any questions.
About China Gold International Resources
China Gold International Resources Corp. Ltd. is based in Vancouver, BC, Canada and operates both profitable and growing mines, the CSH Gold Mine in Inner Mongolia, and the Jiama Copper-Polymetallic Mine in Tibet Autonomous Region of the People's Republic of China. The Company's objective is to continue to build shareholder value by growing production at its current mining operations, expanding its resource base, and aggressively acquiring and developing new projects internationally. The Company is listed on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited (HKEx: 2099).
For additional information:
Elena M. Kazimirova
Investor Relations Manager and Financial Analyst
Tel: +1.604.695 5031
Email: [email protected]
Website: www.chinagoldintl.com
Cautionary Note About Forward-Looking Statements
Certain information regarding China Gold International Resources contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although China Gold International Resources believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. China Gold International Resources cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what China Gold International Resources currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.