Griffin Mining Limited (GFM) (“Griffin”) is extremely pleased to announce that it has negotiated successfully with its’ Chinese joint venture partners to obtain 100% of the net cash flows arising from the first 3 years of production at the Caijiaying zinc gold mine for no additional consideration. This is a significant change from the previous terms of the joint venture whereby Griffin was entitled to only 80% of the net cash flows of Caijiaying until capital repayment.
Upon the expiration of the 3 year term, the net cash flows will revert back to reflect the ownership structure of the joint venture of 60% Griffin and 40% to the Chinese joint venture partners.
Mladen Ninkov, Chairman, commented as follows:
“Griffin is very appreciative to its’ Chinese joint venture partners, and it shows the depth of the joint venture relationship, that they have granted Griffin a potentially extraordinarily large economic benefit, particularly in light of the current rising zinc price, by allowing all of the net cash flows from Caijiaying to revert to Griffin for the first 3 years of production. That will allow for simpler capital and interest repayment to Griffin’s debt providers and, once capital repayment has been concluded, for a potentially large economic gain to accrue to Griffin. The Board, management, and I am sure shareholders, of Griffin, will be delighted by this news.”
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