Jinshan Agrees to US$40 Million Loan From China National Gold Group Corporation
December 6th, 2009 | File Under : Companies - Gold - Mineral Exploration
Jinshan Gold Mines Inc. announces that it has agreed to a loan facility in the amount of US$40 million from China National Gold Group Corporation, its largest shareholder. The loan is non-revolving, will bear interest at a rate of 6% per annum, and is unsecured, with accrued interest payable quarterly. Subject to prior repayment, the outstanding balance of the loan will become due and payable in December, 2011.
The proceeds of the loan will be used by Jinshan to redeem (i) CDN$30 million of 12% promissory notes that were originally issued in December, 2006, and are set to mature on December 14, 2009, and (ii) CDN$12.5 million of 12% promissory notes that were originally issued in June, 2007, and are set to mature on June 26, 2010.
The loan facility remains subject to approval from the Toronto Stock Exchange (TSX).
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