Jinshan Receives RMB 130 Million (US$19 Million) Debt Facility From the Industrial and Commercial Bank of China
BEIJING, CHINA–(Marketwire – Oct. 6, 2008) – Jinshan Gold Mines Inc. (TSX:JIN) announces that its subsidiary, Ningxia Pacific Mining Co. Ltd., has received proceeds of the Renminbi (“RMB”) 130 million (US$19 million) bridge loan (“Bridge Loan”) announced September 8, 2008, with the Industrial and Commercial Bank of China (“ICBC”), the largest commercial bank in China. The Bridge Loan is unsecured, requires no gold hedging and is designed to support operations at the CSH Gold Mine during the installation of crushers and Phase II construction. A larger senior facility is expected to be arranged with ICBC that will retire the Bridge Loan facility. The Bridge Loan is denominated in Renminbi, and interest will be payable monthly at an annual interest rate of 6.21%. The principal amount will be repayable in installments of RMB 30 million (US$4.4 million) in January 2009, RMB 50 million (US$7.3 million) in February 2009, and RMB 50 million (US$7.3 million) in March 2009. The Bridge Loan is guaranteed by Jinshan’s controlling shareholder, China National Gold Corporation and Jinshan will maintain its current position as an entirely un-hedged gold producer.
CSH Gold Mine Production Update
Jinshan continues to make operational improvements at the CSH Gold Mine as reflected in steadily increasing production over recent months. Gold production in June was 4,810 ounces; in July, 5,234 ounces; in August, 6,415 ounces and in September 6,454 ounces.
Jinshan is focused on gold production and acquisitions in China. The company began producing gold at the CSH Gold Mine in July 2007 and is actively advancing its portfolio of gold exploration properties in China. Jinshan’s shares are listed on the Toronto stock exchange under the symbol JIN. China National Gold Corporation, a Chinese state-owned enterprise and the largest gold producer in China owns approximately 42% of Jinshan’s shares.
Forward-Looking Statements: Statements in this release that are forward-looking statements, including the replacement of the bridge loan with a larger credit facility are subject to various risks and uncertainties concerning the specific factors disclosed under the heading “Risk Factors” and elsewhere in the company’s MD&A, financial statements and other periodic filings with Canadian securities regulators. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement.
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