Crater Gold Mining secures debt funding from major shareholder
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21:22 20 Nov 2017 New funding comes from long-time supporter and financier, Freefire Technology.
http://static1.*.com.au/thumbs/upload/Article/Image/2017_11/757z468_1511173840_shutterstock_234717916.jpg Crater aims to restart mining operations at the Crater Mountain Gold Project
Crater Gold Mining (ASX:CGN) has secured a $4.0 million unsecured loan facility with one of its major shareholders, Freefire Technology Ltd.
Funding will enable Crater to continue advancing its flagship Crater Mountain Gold Project in Papua New Guinea where it is planning to restart mining operations. READ NOW: Crater Gold Mining confirms exploration potential in Papua New Guinea
The new funding facility provides the company with liquidity and as a result, the recently outlined rights issue has been formally withdrawn.
The first $1 million in funding is available at the option of the company, with the balance of $3 million requiring the consent of Freefire prior to a draw down request being executed.
The funding enables Crater to move confidently into 2018 well financed to continue working on its Crater Mountain Gold Project and Queensland graphite and polymetallic projects. Exploration priorities
At Crater Mountain, funding will enable the recommencement of exploration activities, including drilling, and also the restart of mining operations at the High Grade Zone (HGZ).
In addition to exploration works in and around the HGZ, the funding will also allow Crater to start a drilling program at the Mixing Zone project during 2018.
The debt facility will also fund follow-up drilling at the Golden Gate Graphite Project in north Queensland as well as a sampling program at the nearby A2 Polymetallic Project. READ NOW: Crater Gold Mining to drill Queensland graphite project
Key terms of the loan facility include an interest rate of 12% per annum payable quarterly in arrears.
The repayment of the facility will occur after the next equity raising or convertible note raising with the amount repaid to be determined.
The board will consider the company’s financial position and future cash requirements so as not to materially prejudice the interests of the company or it's shareholders or the company's ability to pay it's creditors."
Alexkovin....bit hard to know with CGN as it has changed it's skin more times than a python, and as others will affirm through quite a few years it has promised much, delivered a bit early, very little in recent years, but there is potential there, if someone could get it going.
Regards to all.
CGN Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
