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Austral Gold Limited (ASX: AGD,OTC:AGLDF) (TSXV: AGLD) (OTCQB: AGLDF) ("Austral" or the "Company"), an established gold producer, is pleased to advise that that its Argentine subsidiary Austral Gold Argentina SA (AGASA), has obtained a new US$1.3 million unsecured related party loan from Banco Hipotecario (BH). BH is related to Austral's largest shareholder and Chair, Eduardo Elsztain.
The proceeds of the loan will be applied against the AR$1,600 million loan (approximately to US$1.25 million at 18 August 2025) previously obtained and subsequently renewed from BH, as announced on 30 April 2024 and 30 January 2025, respectively, which became due on 1 August 2025.
Material terms of the loan agreement:
Loan Amount: US$1.3 million;
Loan Term: 12 months;
Interest Rate: 11%;
Repayment schedule: 12 consecutive monthly instalments: first installment due in 120 days from receipt of the loan;
Use of Proceeds: Repayment of the previous BH loan of AR$1,600 million, accrued interest, and structuring fees; and
Security: the loan is unsecured.
Following this transaction, the Company's overdraft balance with BH will be approximately ARS$75 million (US$~58,000).
About Austral Gold
Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the Americas based on three strategic pillars: production, exploration and equity investments. Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets.
For more information, please visit the Company's website at www.australgold.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Release approved by the Company's Chief Executive Officer of Austral Gold, Stabro Kasaneva.
For additional information please contact:
| David Hwang | Jose Bordogna |
| Joint Company Secretary | Chief Financial Officer and Joint Company Secretary |
| Austral Gold Limited | Austral Gold Limited |
| david@confidantpartners.com | jose.bordogna@australgold.com |
| +61 433 292 290 | +61 466 892 307 |
Forward-Looking Statements
Statements in this announcement that are not historical facts are forward-looking statements. Forward looking statements are statements that are not historical, and consist primarily of projections - statements regarding future plans, expectations and developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this announcement include statements regarding the use of proceeds, the amount of the overdraft balance with BH, and our expectation that we can continue to lay the foundation for our growth strategy by advancing our attractive portfolio of producing and exploration assets.
All of these forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation, uncertainty of exploration programs, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the capital markets, uncertainty in the measurement of mineral resources and reserves and other risks and hazards related to the exploration of a mineral property, and the availability of capital and a skilled workforce. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Austral cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. Austral's forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and Austral does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/263019
