China Gold International Resources Announces Issuance of US$500 Million Corporate Bond
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 27, 2017) - The Board of Directors of China Gold International Resources Corp. Ltd. (TSX:CGG)(HKSE:2099) (the "Company", the "Guarantor" or "China Gold International Resources") is pleased to announce that on June 27, 2017, the Company, its wholly-owned subsidiary, Skyland Mining (BVI) Limited (the "Issuer") and Joint Lead Managers as defined below, have entered into a subscription agreement (the "Subscription Agreement") pursuant to which the Issuer has agreed to issue to the Joint Lead Managers, and the Joint Lead Managers have agreed, severally and not jointly, to subscribe for bonds (the "Offer") in an aggregate principal amount of US$500 million (equivalent to approximately HK$3.88 billion) at an issue price of 99.663% (the "Bonds") bearing interest at the rate of 3.25% with a maturity date of July 6, 2020, rated BBB- by Standard & Poor's.
The Bonds will be unconditionally and irrevocably guaranteed by the Company.
The net proceeds of the Offer will be used for repaying existing indebtedness, working capital and general corporate purposes of the Company.
The Joint Lead Managers are China International Capital Corporation Hong Kong Securities Limited, Citigroup Global Markets Limited, CCB International Capital Limited, Industrial Bank Co., Ltd. Hong Kong Branch and Standard Chartered Bank.
The Bonds are not being and will not be sold, issued, delivered or offered directly or indirectly in Canada or to, or for the benefit of, any resident of Canada, or for others to resale, directly or indirectly, in Canada or to, or for the benefit of, any resident of Canada, except as otherwise permitted under applicable Canadian laws and regulations. An application will be made to The Stock Exchange of Hong Kong Limited for the listing of, and permission to deal in the Bonds by way of debt issues to qualified professional investors only and such permission is expected to become effective on or about July 7, 2017. The Bonds and the guarantee have not been and will not be registered under the Securities Act and may not be offered or sold within the United States except in certain transactions exempt from, or not subject to, the registration requirements of the Securities Act. Furthermore, none of the Bonds will be offered to the public in Hong Kong other than to "professional investors" as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong.
Mr. Bing Liu, CEO of the Company, noted, "This is the second time our Company has successfully managed a bond offering in the international capital markets thus allowing us to demonstrate that we can take advantage of a diversified, global, financing capability putting us in position to more aggressively pursue our global growth through acquisitions and organic development strategy."
Closing of the Subscription Agreement is subject to the satisfaction and/or waiver of the Conditions of the Subscription Agreement. As the Subscription Agreement may or may not close, shareholders of the Company and prospective investors are advised to exercise caution when dealing in the securities of the Company.
The Offering Circular to be distributed to prospective investors of the Bonds will contain certain financial and other information relating to the Company.
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-Gold 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 (HKSE:2099).