Congrats guys, I have done some more digging and found the...

Congrats guys, I have done some more digging and found the following.

The terms of each of the Facilities are similar and are governed by separate loan agreements. The loan agreements provide for drawdowns by Celamin up to a maximum principal commitment of $250,000 for each facility. The Facilities are repayable by 31 December 2015 or earlier in the event of repatriation of loan funds paid by the Company or Celamin Limited to CPSA, or a capital raising by Celamin. The commitment fee for the loans is 5% and the interest rate is 15% per annum. The loans can be extended at the lenders’ discretion, subject to a rollover fee of 5% and an interest rate of 20% per annum from the time of the rollover. In the event of default, interest is payable at the higher rate of 20% per annum. Celamin Limited, Celamin’s wholly owned subsidiary, has guaranteed the loans. The lenders will be granted a security interest in the event that shareholders approve such a grant to be sought by Celamin at any meeting of shareholders held before the Loan Repayment Date. The lenders may elect to convert all or any part of the money owing under the facilities to ordinary shares in Celamin, subject to shareholder approval, where required.

Does this mean after the announcement on the 28th that the money has been returned and placed in a bank account, does this mean Celamin is now in default on the loan and is now in default. I work this out to mean that 20% interest is now being paid on top of the 5% commitment fee. This seems like a great deal for the Lenders/major shareholders. Like the last loan by African Lion who lent $2M and received $2.7M in shares. Are these arms length transactions?