Austral Gold secures AR$1,400 million loan from BH

Austral Gold Limited (ASX: $AGD) has announced that its Argentine subsidiary, Austral Gold Argentina SA (AGASA), has secured an unsecured related party loan from Banco Hipotecario (BH) for AR$1,400 million. The loan, which amounts to approximately US$1.6 million, has a term of 6 months and carries an interest rate of 5-day average Badlar rate + 2%. The proceeds from the loan will be used to repay a related party bridge loan from Consultores Assets Management SA (CAMSA) of AR$1,200 million plus interest obtained on 27 March 2024.

Executive Commentary on Loan Agreement

The terms and conditions of the loan agreement are standard for loans of this nature in Argentina. We are pleased to have secured this loan, which will enable us to repay our existing bridge loan and continue to advance our growth strategy. This unsecured related party loan from BH demonstrates the confidence and support of our largest shareholder and Chair, Eduardo Elsztain, in the company's operations and future prospects.

Summary of Austral Gold's Loan Announcement

Austral Gold Limited (ASX: $AGD) has successfully secured an unsecured related party loan of AR$1,400 million through its Argentine subsidiary, AGASA, from Banco Hipotecario (BH). The loan, with a term of 6 months and an interest rate of 5-day average Badlar rate + 2%, will be utilized to repay a related party bridge loan and interest. The company continues to lay the foundation for its growth strategy by advancing its portfolio of producing and exploration assets. The loan agreement's standard terms and conditions reflect the typical nature of such loans in Argentina. Austral Gold remains committed to its growth plans and the utilization of the loan proceeds to support its corporate strategy and operations.