Established gold producer Austral Gold Limited’s (Austral or the Company) (ASX: AGD; TSX-V: AGLD) is pleased to announce that it has obtained a US$555,000 unsecured short-term loan from Inversiones Financieras del Sur S.A. (“IFISA”), the Company’s largest shareholder. The material terms of the loan are defined below.
The proceeds from the loan will be used to invest in the Company’s US subsidiary, Austral Gold North America, that recently agreed to provide US$555,000 in bridge funding to the Rawhide Mine in Nevada as announced on 8 May 2023.
MATERIAL TERMS OF THE LOAN AGREEMENT
Loan Amount: US$555,000, which has been fully drawn upon by the Company;
Loan Term: due for repayment on 10 November 2023;
Interest Rate: 8% per annum;
Security: the loan is unsecured; and
Conversion: the loan does not include any right to convert the loan into Austral shares.
The loan agreement contains other terms and conditions which are standard for a facility of this nature. The Board, with the exception of the interested directors who excused themselves from the Company’s decision making, considered advice from a third-party expert that the terms are as favourable as or more so than if the parties were dealing at arm’s length.To see all the content, click here