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China Nonferrous Gold Ltd on Wednesday said it is now liasing with one of its creditors, after they asked for loan repayments. China Nonferrous Gold is a Cayman Islands-based mineral exploration and development company operating the Pakrut gold project in Tajikistan. Back in November, the company’s shares were suspended from trading on AIM, pending clarification of the its financial position. On Wednesday, China Nonferrous Gold said it has received notice from one of its creditors, CNMC Trade Co Ltd, that the loan it had been provided will not be extended. The loan was for $14.6 million and was dated July 12, 2023, and it was due for renewal at the end of 2023. Instead, CNMC has demanded that China Nonferrous Gold repays the loan ‘immediately without delay.’ In addition, CNMC Trade, also on Wednesday, has asked CNG to ‘immediately’ repay the previous outstanding loan, which was $206.1 million and is new outstanding loan of $14.6 million, as well as the interests and the related cost. The total amount of the loans matured to be repaid to CNMC Trade is $220.7 million to date. On Wednesday, CNG has a cash balance of $3.8 million and loans of $314 million, all of which are due for repayment in the next 12 months. ‘The company therefore does not have sufficient cash available to pay the amounts requested nor do the directors believe CNG has the ability to source additional funds in the time frame set out by the demand,’ CNG said. ‘Accordingly, the directors are now liaising with CNMC Trade to discuss a way forward for the company.’ Copyright 2024 Alliance News Ltd. All Rights Reserved.
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