Minco Silver Corp. (TSX: MSV) obtained a repayment of $5.9 million from Changing Longxin Mining Co., Ltd in October 2022. From 2018 until now, the Company has received $13.8 million from Longxin Mining, comprising $6.4 million as principal and $7.4 million as interest payments. As of this current date, the loan’s outstanding balance is $7.9 million. The court is continuing its efforts to get the remaining amount of the loan from Longxin Mining.
In 2018, the firm entered into an accord with Longxin Mining where they provided a loan of $14.6 million. This loan was safeguarded by a 100% stake in Longxin Mining and all of the assets of Longwanshang Gold Mine. Along with this, the loan was further guaranteed by the shareholders of Longxin Mining and a real estate company that they controlled, which included land, property, and cash collateral. The loan was due to expire in February 2019, but it was delayed multiple times until June 30, 2021. However, Longxin Mining could not settle the outstanding balance on the given date. The Company then began legal proceedings to reclaim the outstanding principal and accrued interest. In November 2021, a court ruling was given in the Company’s favor, demanding that Longxin Mining and other related defendants repay the Company for the claimed amounts and court fees. Longxin Mining attempted to challenge the ruling in December 2021, but the court ultimately upheld the original decision in June 2022. Eventually, the Company was able to receive repayment of $5.9 million from Longxin Mining in October 2022, which included $2.8 million in principal and $3.1 million in interest payments.