Austral Gold secures us$2m loan from IFISA

Austral Gold Limited (ASX:AGD) has secured a US$2.0 million loan from Inversiones Financieras del Sur SA (IFISA), the Company's largest shareholder. The loan, considered a 'related party' transaction, will be utilized for working capital and is secured by up to 20,190,791 shares of Unico Silver Limited held by Austral Gold Canada Limited, a wholly owned Canadian subsidiary of the Company. Shareholder approval is required for the grant of the collateral as security and guarantee.

Executive commentary on the loan agreement

The Board of Directors of Austral, with the exception of the interested directors, have approved the Loan, including the terms described above. The Board, excluding the interested directors, are of the view that the terms of the Loan, and the form of the underlying loan agreement, without regard to the security interest, are as reasonable (or better) than if Austral and IFISA were dealing at arm's length.

Summary of Austral Gold's loan announcement

Austral Gold Limited has obtained a US$2.0 million loan from its largest shareholder, IFISA, with the loan being considered a 'related party' transaction. The loan, secured by Unico shares, will be used for working capital, subject to shareholder approval. If the loan is not repaid by transferring the collateral, the Company plans to utilize future gold and silver sales to repay the loan by September 2026. The loan reflects ongoing financial support from the major shareholder to fund operations, primarily due to equipment repair delays impacting production. Austral Gold continues to focus on its growth strategy by advancing its portfolio of producing and exploration assets in the Americas.