TORONTO, May 15, 2013 /CNW/ - Boyuan Construction Group, Inc., (TSX: BOY, BOY.DB.A), a growing construction company in China of commercial, residential
and municipal infrastructure projects, announced today that its Chinese
special purpose operating entity, Zhejiang Boyuan Construction Co.,
Ltd. ("Boyuan China"), completed a loan transaction with an arm's
length China-based lender for the principal amount of RMB 25 million
(the "RMB Loan") pursuant to a corporate client entrusted loan
agreement between Boyuan China, the lender and a major Chinese bank.
The RMB Loan is for a term of one year, may be prepaid with the lender's
approval and may be extended with the lenders' and guarantor's
approval. The RMB Loan bears interest at a rate of 23.5% per annum,
payable monthly. The RMB Loan is secured by a guarantee from Mainway
Management Limited ("Mainway"), a company controlled by Mr. Shou
Cailiang, Chairman, President and CEO of the Corporation. The Mainway
guarantee is secured by a pledge of 15,735,269 Boyuan common shares
owned by Mr. Shou and his wife through Mainway. In addition, Mainway
granted an option to an affiliate of the lender to purchase up to 1
million of the Boyuan shares pledged by Mainway exercisable for one
year at a price of C$0.33 per share.
Boyuan also announced the retirement of its 11.75% secured convertible
debentures due May 15, 2013 (the "Secured Debentures") and is
processing the repayment of the Secured Debentures.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the
business of commercial building and residential construction, municipal
infrastructure and engineering projects. In its last three fiscal
years ending June 30, 2012, Boyuan completed more than 80 projects for
a number of private and public sector clients. Boyuan's current
project backlog includes residential, commercial, industrial and
mixed-use developments. From its operating bases in Zhejiang Province
and in Hainan Province, Boyuan focuses on construction projects in
China's fast-growing regions of the Yangtze River Delta, Hainan
Province and Shandong Province. For more information please visit www.boyuangroup.com.
SOURCE: Boyuan Construction Group, Inc.
For further information:
Boyuan Construction Group, Inc.
Mr. Paul Law, CFO
+(852) 9329 5088
(416) 815 0700 ext. 253