Kasbah Resources has secured an loan facility increase and extension from Pala Investments Limited, currently Kasbah’s largest shareholder.
Kasbah Resources (ASX:KAS) advises that Pala Investments, currently Kasbah’s largest shareholder, has increased and extended its existing loan facility. Pala will make available a A$2,000,000 loan to Kasbah, in addition to Pala’s existing loan of A$1,000,000 as previously announced on August 11, 2016. The funds from the Pala Loan will be used to finalize the 2018 definitive feasibility study, meet development expenditure commitments necessary before a final decision to mine is made on the Achmmach Tin Project, and cover ongoing working capital requirements.
As quoted in the press release:
The material terms of the Pala Loan are as follows:
- Increase in loan amount from A$1,000,000 to A$3,000,000 (Total Loan Amount)
- Total Loan Amount interest rate remains unchanged at 12 percent per annum
- Establishment fee of 1.5 percent on increased loan amount of A$2,000,000
- Extension of maturity date from June 30, 2018 to December 31, 2018 unless Kasbah completes an equity raise prior to such maturity date, at which point the Pala Loan may be requested by Pala to be prepaid, in full or in part, concurrent with the completion of such equity raise. Kasbah continues to be able to prepay the Pala Loan at any time without restrictions or prepayment fees.
“We are very grateful for the ongoing support Pala demonstrates in Kasbah and the Achmmach Tin Project,” notes Kasbah CEO, Russell Clark. “Together with their support and support of our broader investor group, we remain extremely optimistic of a positive outcome for all shareholders in the near future.”