Sinogold
Sino Gold Mining Limited (Sino) is an Australia-based company. The principal activities of the Company are mining and processing of gold ore, and sale of recovered gold, and exploration and development of mining properties. The Company mined 692,000 tons of ore through open-cut mining during the year ended December 31, 2007. At December 31, 2007, Sino had acquired a 94% interest in Golden China Resources Corporation. The operation in Jinfeng Mine achieved commercial production on September 1, 2007. A total of 449,000 tons of ore were treated during 2007, with an overall recovery of 71.9% producing 56,981 ounces of recovered gold. In 2007, 43,483 ounces of gold were sold. As of December 31, 2007 the 230 meter of underground development was achieved in White Mountain. Compulsory acquisition of Gold China Resource Corporation was completed on January 16, 2008.
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Sino Gold in $176 million loan facility with China Construction Bank
Sino Gold Mining (ASX:SGX,SEHK:1862) has advised that the China Construction Bank has agreed to provide a Renminbi (“RMB”) denominated loan facility totalling RMB780 (A$176) million for the Company’s Jinfeng Gold Mine in Guizhou Province, China.
Sino Gold Chief Executive Officer Jake Klein said, “This is a significant breakthrough for Sino Gold and further cements our long-standing relationship with one of China’s leading banks. The China Construction Bank is a participant in the original Jinfeng Project Loan as well as the recent project loan for our White Mountain Gold Mine.
“The loan provides a big step towards optimising the structure of Sino Gold’s borrowings. The terms are very straight forward and the interest rate compares very favourably internationally, particularly in the current market. Another advantage is that the facility does not require any hedging of future gold sales. The company said, Sino Gold’s gearing remains low and the Company is in an excellent position to take advantage of various growth opportunities.
Initial drawdowns of the China Construction Bank facility will be used to:
- Repay the current US$-denominated Jinfeng Project Loan in full, which had a principal amount outstanding of US$30 (A$44) million at 31 December 2008; and
- Repay the current RMB-denominated Jinfeng Standby L/C Loan in full, which had a principal amount outstanding of RMB371 (A$78) million at 31 December 2008.
Repayment of the Jinfeng Standby L/C Loan will enable the cash currently held on deposit as collateral of approximately US$58 million to be released for general corporate purposes within the Company. The balance of the new facility will provide further available credit.
The key terms of the loan facility are:
- Loan amount of RMB780 (A$176) million comprised of a six-year RMB680 (A$154) million long-term facility and 12-month RMB100 (A$22) million working capital facility.
- Floating interest rate in line with the People’s Bank of China published rates, currently 5.94% pa for the long-term facility and 5.31% pa for the working capital facility.
- The long-term facility is repayable in five annual instalments ending in early 2015.
- No hedging required to be put in place.
- Sino Guizhou Jinfeng Mining Limited is the borrower and Sino Gold Mining Limited provides the joint liability guarantee throughout the loan life.
Other Sinogold news
- Eldorado Gold to acquire Sinogold for A$2.2bn
2009-08-27 - Sino Gold sees record production and starts developing third mine
2009-04-22 - Sino Gold increases stake in high grade Eastern Dragon prospect in China
2009-03-12
