Horseshoe Metals Limited (ASX:HOR) (“Horseshoe” or “the...

Horseshoe Metals Limited (ASX:HOR) (“Horseshoe” or “the Company”) is pleased to advise that it has entered into an unsecured Loan and Convertible Note Agreement (“Facility”) with its major shareholder and company director, Michael Fotios.

Details of the Facility are summarised below:

Lender: Michael George Fotios ATF The Michael Fotios Family Trust
Loan Amount: Up to $1.0 Million, to be drawn down as ten unlisted, Convertible Notes, each having a face value of $100,000;
Interest Rate: 6.0% p.a. accruing annually;
Maturity Date: 24 July 2016;
Repayment: In cash at Maturity Date
Conversion: The Convertible Notes may be converted into shares, at the Lender’s election, at a conversion price equal to the price of shares under the Company’s next equity fund raising.

The Lender is also entitled to receive any free attaching securities issued as part of the equity raising (at the same ratio).

The issue of conversion shares and free attaching securities is subject to any shareholder approval that may be required; and Use of funds:

The funds will be applied to fund on-going exploration and development activities at the Company’s Horseshoe Lights and Kumarina Projects and for working capital purposes.