Mr. Stabro Kasaneva reports
AUSTRAL GOLD SECURES US$3M RELATED PARTY LOAN
Austral Gold Ltd. has obtained a new unsecured short-term loan of up to $3-million (U.S.) from Inversiones Financieras del Sur SA (IFISA), the company's largest shareholder. The material terms of the loan are defined below.
Material terms of the loan agreement:
- Loan amount: up to $3-million (U.S.);
- Loan term: six months; loan may be repaid earlier at the company's option;
- Interest rate: 9 per cent per annum;
- Use of proceeds: working capital;
- Security: The loan is unsecured.
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 favourable as or more so than if the parties were dealing at arm's length.
In addition, the terms of the $1-million (U.S.) in loans provided by two of its directors, Eduardo Elsztain and Saul Zang, as announced on March 13, 2023, have been amended. The maturity date is now Dec. 31, 2023, with an interest rate of 9 per cent, effective Sept. 1, 2023. The board, with the exception of the interested directors who excused themselves from the company's decision making, concluded that the amended terms are as favourable as or more so than if the parties were dealing at arm's length.
We seek Safe Harbor.
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