Loan use 5 million by 15 May, cash crises? Terms of the loan?, page-39

I was so lucky not to bet against millie43au, that loans would be more than 5 million
during Q2, and I would probably have won my suggestion that loans are at least 6 million
at the end of Q3 (now 7 million), unless they will not repay 2 million which would be unlikely.

They had 3 million cash at the end of Q2 and
they have already drawn down 2 million more loan!!
Loans are now at least 7 million AUD, repayment at the end of next year
and substantial part of the remaining 5 million loan facility may be needed
this and next year.  The terms of penalty payments would get interesting.
If the company would get listed in HK, the now owners may get an
unpleasant surprise from AP-group ruling the company.

Note how they try to avoid telling the total amount of the loan
in the H1 2018 report;

"On 20 July and 17 August 2018, the Company drew down an additional $2.0 million in total from its unsecured Loan Facility with AP Finance Limited. The drawdown was used to fund existing development projects and to provide additional working capital.

On 27 August 2018, the Company increased its Loan Facility by A$4.0 million, bringing the total Loan Facility to the AUD equivalent of $12.0 million. In addition, the repayment date was revised from 31 October 2019 to 31 December 2019. At the date of this report A$5.0 million remained undrawn. "

The information is from the page 7
https://hotcopper.com.au/threads/ann-half-yearly-report-and-accounts.4392980/

It is also quite interesting that they do not tell about the amounts drawn down from the facility
when they tell about increasing the facility

"ASX ANNOUNCEMENT 28 AUGUST 2018 CHANGES TO LOAN FACILITY On 15 February 2017, Dragon Mining Limited (ASXRA) (“Dragon Mining” or “the Company” advised that the Company had entered into a revolving loan facility (“Loan Facility” with AP Finance Limited (“APFL”, a company associated with Allied Properties Resources Limited (“Allied” for up to A$6 million equivalent in HK dollars in unsecured standby funding. On 28 March 2017, the Company advised that the repayment date had been extended to 31 October 2019. On 5 June 2018, the Company further advised that the parties had agreed to increase the Loan Facility by A$2 million to up to A$8 million equivalent in HK dollars.

The Company advises that the parties have agreed to increase the Loan Facility by A$4 million to up to A$12 million equivalent in HK dollars and to extend the repayment date to 31 December 2019. All other terms and conditions of the Loan Facility remain unchanged. For and on behalf of Dragon Mining Limited "
https://hotcopper.com.au/threads/ann-changes-to-loan-facility.4390670/

Regards
NI

PS. Good grades may be mined in Orivesi during Q3, but there may be some bad
news waiting, too.