Octagonal Resources (ASX:ORS) has arranged a new loan arrangement intended to help the developer diversify.
A company related to Octagonal chairman Ian Gandel has agreed to loan Octagonal A$300,000 with no fees payable and interest levied by the bank to be reimbursed by the lender.
The agreement builds on other recent Octagonal fundraisers, including a $1 million bank standby credit facility announced in March and the sale of the Maldon gold operation in June to A1 Consolidated Gold (ASX:AYC) for a compensation package valued at $9.16 million.
Octagonal’s moves to cash up its strategic diversification investigations coincide with the company’s appointment of Perth-based professional services provider LinQ Corporate Pty Ltd as corporate advisor.
Octagonal hinted in early August that it could be open to transitioning away from the mining industry when it confirmed the sale of Maldon and flagged LinQ’s engagement to identify new opportunities “in both the resources and non-resources sectors.”
Sale of Maldon has resulted in Octagonal becoming the largest shareholder in A1, with a 38% holding.
ORS maintains a 100% stake in Western Australia’s Hogan’s project, where the company is exploring for gold, copper and nickel sulphide deposits in an unexplored are only 70 kilometres southeast of Kalgoorlie and only 20 kilometres east of the world-class St Ives and Kambalda mining areas.
St Ives is estimated to hold some 12 million ounces of gold, while Kambalda has been identified as bearing some 1.4 million tonnes of nickel metal.
