we have this laon facility in place In December 2018, TIG’s...

we have this laon facility in place

In December 2018, TIG’s wholly owned subsidiary LLC Beringpromugol (“BPU” repaid the outstanding balance of theRUB 600 million working capital financing obtained in 2017 (“2018 WC Facility”. Furthermore, BPU signed a newworking capital facility (“2019 WC Facility” with Sberbank Russia with the following key terms:
RUB 900 million (A$18.336 million), to be drawn down no later than September 2019;
Nominal interest rate of between 10.2% and 11.2%, dependent upon compliance with certain terms andconditions;
Security comprising the pledge of TIG owned mining fleet, security over promissory notes acquired andthe provision of cross guarantees by TIG’s other Russian subsidiaries;
Loan repayment schedule from September through December 2019; and
Covenants in respect of the levels of lending able to be attained by BPU, various profitability and sundrycovenants ordinarily expected in such financing. Furthermore, there is a covenant in respect of therequirement of three of TIG’s major shareholders to retain their shareholdings at or above certain minimum levels throughout the term of the facility.

which is more than adequate? why did we have to secure loans from bruce gray at 12%? why did they miss a 5 mill shortfall on the first loan of RUB 600 million working capital?



On 20 March 2019, the Company executed term sheets with its two largest beneficial shareholders, namely BV Mining Holding Limited through its affiliate BV Mining Investment Limited, and Dr. Bruce Gray, through a controlled entity, in accordance with which each will make available to the Group an unsecured non-revolving loan facility of up to US$2.5 million (“Shareholder Loan Facility”, providing total shareholder funding of up to US$5 million. Each Shareholder Loan Facility will have a one-year tenure and incur interest at 12% per annum, payable quarterly. The loan agreements are expected to be executed substantially on the aforementioned terms during April 2019