Signature Metals Limited (ASX: SBL) (“Signature”) is pleased to announce that it has today entered into an intercompany loan facility with its 76% shareholder, LionGold Corp Ltd (“LionGold”). LionGold will provide Signature with up to US$11.0 million in funding. Advances are not repayable before 5 years, except in limited circumstances, with interest at 6% only commencing after 3 years. The facility is unsecured. LionGold has advanced US$5.38 million to Signature under the facility to date.
Funds drawn under the facility will be used for working capital purposes.
The funds are interest free for three years and then at only 6% after that.
I just can't help but think that it is too good to be true and wonder where the catch is?
SBL Price at posting:
0.7¢ Sentiment: None Disclosure: Held
