30th Nov 2017 07:04
China Nonferrous Gold Limited(“CNG” or the “Company”)
Construction Supervision Service Agreement
China Nonferrous Gold Limited 中国有色黄金有限公司 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, is pleased to announce that the Company’s subsidiary,Kryso Resources Limited, has signed a construction supervision service agreement with Xincheng Construction Supervision Consulting Co., Ltd (“XCSC”). XCSC was selected following a tender process to provide supervisory and inspection services to CNG and its subsidiary LLC Pakrut in relation to the construction of the tailings pond, backfill station and accommodation quarters.
The contract price is calculated on the basis of a daily rate per person and based on the Company’s current expectations will amount to 1.62 million RMB (approximately USD$ 245,000). Pursuant to the terms of the agreement it will terminate on 31 October 2018, being the expected date for the completion of the three aforementioned constructions, although can be extended by mutual consent.
XCSC is an associate of China Nonferrous Metals International Mining Co., Ltd (“CNMIM”), the Company’s 38.36% shareholder. Pursuant to AIM Rule 13, the proposed supervisory contract is deemed to be a related party transaction (the “Proposed Transaction”). The Company’s board of directors (excluding Wu Xiang,Yu Lixian and Zhang Hao, who are appointees of CNMIM) considers, having consulted with CNG’s Nominated Adviser, Investec Bank plc, that the terms of the Proposed Transaction 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 LimitedYu Lixian, Managing DirectorTel: +86 10 8442 6681
Investec Bank PlcJeremy Ellis, George PriceTel: +44 (0)20 7597 5970
Beaufort Securities LimitedJon BellissTel: +44 (0)20 7382 8300
BlytheweighTim Blythe, Camilla HorsfallTel: +44 (0)20 7138 3224
LEI: 213800N6OF4LUDO7WD522.2. Inside information
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