Jinshan receives RMB 130 million (US$19 million) debt facility

Jinshan Gold Mines reports that its subsidiary, Ningxia Pacific Mining Co. Ltd., has received proceeds of  US$19 million debt facility from the largest commercial bank in China.

The Bridge Loan is unsecured, requires no gold hedging and is designed to support operations at the CSH Gold Mine during the installation of crushers and Phase II construction. A larger senior facility is expected to be arranged with ICBC that will retire the Bridge Loan facility. The Bridge Loan is denominated in Renminbi, and interest will be payable monthly at an annual interest rate of 6.21%. The principal amount will be repayable in installments of RMB 30 million (US$4.4 million) in January 2009, RMB 50 million (US$7.3 million) in February 2009, and RMB 50 million (US$7.3 million) in March 2009. The Bridge Loan is guaranteed by Jinshan’s controlling shareholder, China National Gold Corporation and Jinshan will maintain its current position as an entirely un-hedged gold producer.

For full details of this press release, click this link. To view Jinshan Gold Mines’ company profile, click here. Follow developments in gold mining and exploration for free.
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