Mr. Stabro Kasaneva reports
AUSTRAL GOLD SECURES NEW RELATED PARTY LOAN IN ARS PESOS
Austral Gold Ltd.'s Argentine subsidiary, Austral Gold Argentina SA (AGASA), has obtained an unsecured related party loan from Banco Hipotecario (BH) for 1,400 million Argentine pesos. BH is related to Austral's largest shareholder and chair, Eduardo Elsztain.
Material terms of the loan agreement:
- Loan amount: 1,400 million Argentine pesos (approximately $1.6-million (U.S.));
- Loan term: six months; loan may be repaid earlier at the company's option at 2-per-cent prepayment fee;
- Interest rate: five-day average Badlar rate plus 2 per cent;
- Use of proceeds: repayment of related party bridge loan from Consultores Assets Management SA (CAMSA) of 1,200 million Argentine pesos plus interest obtained on March 27, 2024;
- Security: the loan is unsecured.
The Buenos Aires Deposits of Large Amount Rate (Badlar) is a market reference rate in Argentina in local currency and is influenced by the rate of inflation in the country. As a result, it has been decreasing in recent months and as of April 26, 2024, was 50.7 per cent per annum. The terms and conditions of the loan agreement are standard for loans of this nature in Argentina.
About Austral Gold Ltd.
Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the Americas. Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets.
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