VANCOUVER, CANADA
– Jinshan Gold Mines Inc. (TSX: JIN) 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).
About Jinshan
