Franconia Minerals Corporation (TSE:FRA) reports that it has received a single advance loan of Cdn$1 million from a private lender for working capital and other general corporate purposes.
The press release is quoted as saying:
The Loan is secured, bears interest at a rate of 15% per annum, compounds and is payable monthly and is due on December 2, 2011. The Loan may be prepaid at Franconia’s election in whole or in part at any time. In addition, the lender may demand repayment upon the occurrence of certain events. As consideration for advancing the Loan, the lender was paid a set up fee and a cash commission and is entitled to a bonus payment upon prepayment or repayment of the Loan.