Credit Facilities

9 Months Ended

Mar. 31, 2016

Credit Facilities [Text Block]

Note 8 – Credit Facilities

Short term loans - banks:

The outstanding balances on these loans consisted of the following:

		March 31,		June 30,
		2016		2015
Loans from China Construction Bank, each with an interest rate from 4.35% to 4.60% per annum, due September, October and December, 2016, and March 2017; guaranteed by Jinshengding Mineral Products Co., LTD and Mr. Xianfu Han.		12,404,400		5,729,500
Loan from Bank of Beijing, interest rate at 6.40% per annum, due March, 2017, guaranteed by Beijing Jinshengding Mineral Products Co., LTD and Mr. Xianfu Han.		4,651,650		4,911,000
Loan from Citic Bank, interest rate at 7.80% per annum; guaranteed by Jinshengding Mineral Products Co., LTD, Mr. Xianfu Han and Mr. Weili He. This loan was repaid in full in August 2015.		-		3,274,000
	$	17,056,050	$	13,914,500

The above guarantors are various suppliers to the Company. Mr. Xianfu Han and Mr. Weili He are the Company’s Chief Executive Officer and interim Chief Financial Officer, respectively. Also see Note 10 – Related party transactions.

Bank guarantees:

Bank guarantees represent amounts due to issuing banks after beneficiary vendors completed shipments. Bank guarantees are non-interest bearing and due within six months. The outstanding balances on these bank guarantees consisted of the following:

		March 31,		June 30,
		2016		2015
Bank guarantees due to China Construction Bank, guaranteed by Beijing Jinshengding Mineral Products Co., LTD, and Mr. Xianfu Han, a related party. The guarantees were repaid in full in November 2015.	$	-	$	12,441,200

As of March 31, 2016 and June 30, 2015, the Company had restricted cash for short-term loans and bank guarantees of approximately $0.1 million and $2.6 million, respectively.

Notes payable:

Bank notes are issued to a third party for inventory purchases. The notes payable were guaranteed by Beijing Jinshengding Mineral Products Co., LTD and Mr. Xianfu Han and amounted to approximately $22.3 million (RMB144 million) and $30.5 million (RMB187 million) as of March 31, 2016 and June 30, 2015, respectively, and were non-interest bearing with expiration dates between April and September 2016. The restricted cash for the notes was approximately $6.0 million and $8.5 million as of March 31, 2016 and June 30, 2015, respectively.