Mindax (ASX: MDX) has secured additional short term funding by way of a $250,000 unsecured non-recourse loan from Lai You, an existing shareholder of the company and related party to non-executive director Andrew Tsang.
She had previously provided a similar short term loan of $250,000 in February this year.
Proceeds from the loan will be applied to the company’s project activities and for general working capital.
The terms of the loan are considered to be commercially favourable and shareholder approval is not required.
Mindax is required to repay the loan in cash on or before 31 January 2015.
No interest is payable on the loan, unless the company elects to convert the loan into shares and shareholder approval to the conversion of the Loan is not obtained.
Should this occur, then interest will accrue at the rate of 9% per annum, capitalised monthly from the date of issue of the Loan until the date of actual repayment.
Mindax’s recent second phase drilling at its Meekatharra North project in Western Australia had identified nugget-like gold up to 3,150 ppb, confirming the presence of a deep mineralised structure extending over 200 metres below surface.
Its Mt Forrest Iron Project is progressing through feasibility with a view to mining in 2015, with tenure in place for water and infrastructure covering over 2,400 square kilometres.
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