China Gold International Announces Loan Agreement and Deposit Services Agreement with Related Party
VANCOUVER, British Columbia, Dec. 20, 2018 (GLOBE NEWSWIRE) -- China Gold International Resources Corp. Ltd. (TSX: CGG; HKEx: 2099) (the “Company” or “China Gold International Resources”) wishes to announce that on or about December 18, 2018, Inner Mongolia Pacific Mining Co. Ltd., a cooperative joint venture company in which the Company holds a 96.5% interest and China National Gold Group Finance Company Ltd. (“China Gold Finance”) entered into a four (4) month term extension supplemental loan agreement extending the original Loan Agreement entered into on December 18, 2017, all other terms and conditions of the original Loan Agreement remain the same.
In addition, on or about December 18, 2018, the Company and China Gold Finance entered into a one (1) year term extension supplemental deposit services agreement extending the original Deposit Services Agreement entered into on December 18, 2017, all other terms and conditions of the original Deposit Services Agreement remain the same.
China Gold Finance is licensed by the China Banking Regulatory Commission. China National Gold Group Co., Ltd. (formerly: China National Gold Group Corporation), the controlling shareholder of the Company, holds a 51% interest in China Gold Finance and therefore, both the Deposit Services Agreement and the Loan Agreement (together, the “Transactions”) constitute a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). For the purposes of MI 61-101, the Transactions are exempt from (i) minority approval requirements in accordance with section 5.7(a) by virtue of the fact that the value of the loan and the deposit, in each case, is less than 25% of the Company's market capitalization and (ii) the formal valuation requirement because each of the loan and the deposit is a credit facility.
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).
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.