Category Archives: Credit agreements

Subsidiary of the BVI company China Natural Resources announces entering into Bank Financing Agreement

BVI-registered China Natural Resources, Inc. announced in the end of April that its China-based indirect 70%-owned subsidiary Guizhou Yongfu Mining Co., Ltd. had entered into a bank financing arrangement in order to fund construction and development of the Yongsheng Coal Mine – a coal mine located in Huajuexiang, Guizhou Province in the People’s Republic of China.

The subsidiary of the BVI company, Guizhou Yongfu, is the owner of the mining rights to the Yongsheng Coal Mine. The long-term loan in the amount of  US$29.30 million is being provided by China Minsheng Banking Corp. Ltd., and is to be paid in annual installments of principal commencing in 2013 and terminating in 2017. Its interest is payable quarterly at an annual rate equal to 30% above the over-5-year official lending rate (currently 5.94% per annum).

The US$14.65 million balance of the loan is expected to be drawn down as needed in accordance with the construction plan for the coal mine, which is currently anticipated to be in December 2009. The Yongsheng Coal Mine is not operating yet. The estimated cost of mine construction and development is approximately US$52.74 million to US$58.61 million, and BVI company’s subsidiary plans to finance the balance of the estimated construction costs through a combination of internally generated funds and additional third-party loans.

Talon Metals (BVI) announces financial results for the period ended September 30, 2008

British Virgin Islands-registered mineral exploration company Talon Metals Corp. reported financial results for the period ended September 30, 2008. For the third quarter 2008 the company reported net loss in the amount of $4,185,194 or $0.16 per share (basic and diluted), while by the results for the second quarter 2008 its net earnings were US$1,023,538, or US$0.04 per share. The third quarter net loss also compares to earnings of $8,171 or $0.00 per share for the same period of 2007, and earnings in the amount of $8,476,072 or $0.31 per share for the first nine months of 2007.

Capitalized exploration for the three and nine month periods ended September 30, 2008, was $343,399 and $1,279,240 respectively, relating mainly to the Agua Branca and Sao Jorge projects. These amounts compare to  $307,415 and $1,364,137 respectively for the same periods of 2007.

By the end of the period ended September 30, $3 million loan of Talon Metals to another BVI corporation, Saber Energy Corp., was advanced to $6 million. Talon’s due diligence review of Saber is in progress, and both companies are planning to negotiate a pre-merger agreement on or before March 24 of the next year.

Gengsheng Establishes new credit line to support continued growth

China Gengsheng Minerals, Inc., a materials technology company based in China and conducting its business through the BVI-domiciled subsidiary Gengsheng International Corporation, announced the establishment of US$1.19 mln credit line with Gongyi Chengzhong Agriculture Credit Cooperative in Henan province of China.

The new credit line is available through August 14, 2009, and secured by certain assets of Henan Gengsheng Refractories Co., Ltd., which is the wholly-owned subsidiary of the BVI-registered Gengsheng International Corporation. The proceeds from the new credit line are expected to expand the facilities of China Gengsheng Minerals, and for other working capital needs.

In the first half of 2008, China Gengsheng Minerals generated a positive net operating cash flow of $4.3 mln., capital expenditures in the first six months of 2008 made $2.5 mln. The secured short-term bank loans of the company were US$5.1 mln as of June 30.