China Natural Resources, Inc., the company operating in China and domiciled in BVI, announced that its indirect 60%-owned subsidiary based in China, Bayannaoer Feishang Copper Company Limited, had entered into a series of agreements relating to US$36.59 mln bank loan from the People’s Bank of China.
Under the terms of the loan from the Bank’s Shenzhen Branch, its principal amount is to be repaid during the period from October 1, 2010 to July 1, 2013, when the then outstanding principal amount of the bank loan is due to be paid. The bank loan is secured by all the land, building, plant and machinery of Feishang Copper, the subsidiary of the BVI corporation.
The primary borrower is Shenzhen Feishang Enterprise Co. Ltd., a related party through common control by the Chairman of China Natural Resources, Mr. Feilie Li. He commented on the loan saying that it “signifies the bank’s recognition of the Company’s copper smelting business and relatively low debt position.” By his words, the BVI company will continue the acquisitions strategy in coal and non-ferrous metal/iron projects.
The purpose of the bank loan is to finance the operation of Feishang Copper, which is engaged in the smelting and refining of blister/anode copper and sulfuric acid for distribution in the PRC.