Mr. Stabro Kasaneva reports
AUSTRAL GOLD SECURES NEW US$2.2M RELATED PARTY LOAN FACILITY
Austral Gold Ltd. has a new unsecured related party loan facility from Consultores Assets Management S.A. for up to $2.2-million (U.S.) and received $1-million (U.S.) on March 5, 2024. Consultores is related to Austral's largest shareholder and controlled by its chair, Eduardo Elsztain.
Material terms of the loan agreement:
- Loan amount: up to $2.2-million (U.S.);
- Loan term: six months (The loan may be repaid earlier at the company's option.);
- Interest rate: 9 per cent per annum;
- Use of proceeds: working capital;
- Security: loan is unsecured.
The terms and conditions of the loan agreements are standard for facilities of this nature, are unsecured and are, in the view of the non-involved Austral directors, as favourable, if not more so, than if the parties were dealing at arm's length. The cash received under the loan facility has been used for working capital purposes.
In addition, the maturity of the unsecured related party loans referred to in the attached table were amended to Sept. 30, 2024.
About Austral Gold Ltd.
Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the Americas. Austral Gold continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets.
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