Ora Gold Limited (ASX:OAU) has agreed to the terms of an unsecured loan facility from Ioma Pty Ltd, an entity associated with Ora Gold director Ian Philip Crabb.
The loan facility will assist Ora Gold with its working capital requirements.
Ioma will provide the company with funding of up to $1 million, which is repayable on the later of:
The date that is two years from the date of the first drawdown; or
The date that is two years from the date of the loan facility agreement (May 17, 2020) if not paid before.
The amount drawn will accrue interest at 7% per annum calculated on the daily balance of the amount drawn.
The accrued interest is payable on the earlier of: the date on which any outstanding financial accommodation provided under the facility is repaid in full; and the maturity date.
The company has arranged this loan facility as a measure to provide working capital while implementing the board’s decision to change the near-term focus of Ora Gold’s growth strategy.
The company is working towards a growth strategy of a low-cost development and cash flow from its recently expanded tenements on the Garden Gully and Abbotts greenstone belt.