Austral Gold secures us$2.2m related party loan facility

Austral Gold Limited (ASX: $AGD) has secured a new unsecured related party loan facility from Consultores Assets Management S.A. for up to US$2.2 million, with an initial receipt of US$1 million on 5 March 2024. The loan, with a term of 6 months and an interest rate of 9% per annum, is intended for working capital purposes. The loan is unsecured, and the terms and conditions are considered favorable by the non-involved Austral directors.

Executive Commentary on Loan Facility

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 favorable, 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.

Summary of Austral Gold's Announcement

Austral Gold Limited (ASX: $AGD) has announced the securing of a new unsecured related party loan facility from Consultores Assets Management S.A. for up to US$2.2 million, with an initial receipt of US$1 million. The loan, with a term of 6 months and an interest rate of 9% per annum, is intended for working capital purposes. The company's growth strategy continues to advance through its attractive portfolio of producing and exploration assets. The announcement reflects the company's proactive approach to securing necessary funding for its operations and signifies a positive step in its ongoing growth strategy.