Australian-Chinese investment house, ASF Group (ASX:AFA) will gain a further $1 million from Star Diamond Developments Limited in a new convertible loan facility, following an earlier $1 million loan facility.
In February, a wholly owned subsidiary of ASF, together with its strategic partners in China were announced as the Preferred Proponent by the Queensland Government and Gold Coast City Council for the development in the Gold Coast of an integrated Marine Project at the Broadwater.
Detailed discussions are underway between ASF, the Queensland Government and Gold Coast City Council and further news is expected in the near future.
Previously, Star Diamond converted a total value of $2,314,410, which represents the repayment of a principal amount of $1,000,000 together with all outstanding accrued interest of $1,314,410, into 21,040,091 fully paid ordinary shares of ASF at a price of $0.11 per share.
Current ASF share price is sitting at $0.165.
Together with the new facility takes to $2 million the outstanding convertible loan amount.
The Broadwater Marine Project, which is a joint initiative of the Queensland Government and Gold Coast City Council seeking investments to deliver an integrated tourism development in Queensland.
Gold Coast Broadwater project
The Gold Coast Broadwater, also known as Southport Broadwater and Gold Coast Harbour, is a large shallow estuary of water reaching from the locality of Southport to the southern section of Moreton Bay.
The world-class project could include a cruise ship terminal on State Government-owned land on The Spit or on Wave Break Island in the Broadwater.
ASF China Property Consortium, a subsidiary of ASF Group, Azure Consortium, ACPI Consortium and Ridong Development had been shortlisted by the state and Gold Coast City Council to refine their proposals.
ASF's consortia includes: China Communications Construction Company, Guangzhou Dredging co Ltd and China State Construction Engineering Corporation Limited (CSCEC)
Chairman of ASF Group Min Yang told Proactive Investors recently the project would be a "gateway to Australia" and an opportunity "to build something special to attract tourists and benefit the state in employment.
One of the advantages that ASF Group has is its ability to attract tourists from Asia from its tourism division.
Clearly, the project is a "game changer" for ASF Group; it leverages ASF's capacity to bring together Chinese and Australian funding and project expertise.
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