18th Feb 2016 08:47
LONDON (Alliance News) - Rurelec PLC on Thursday said it has entered into and fully drawn down a GBP850,000 short-term loan facility with Bridge Properties (Arena Central) Ltd.
The proceeds are for working capital purposes, Rurelec said, as well as for the repayment of the Radix Investments loan.
The repayment date for the facility is June 30, with interest at 1% per month.
Rurelec added that the loan is intended to allow the company time to source further long-term funding, although there can be no guarantee that long-term funding will be available. It said its cash position continues to be "extremely tight" notwithstanding the facility, and that it is exploring how best to arrange for the company to benefit from the cash generated by its asset in Argentina.
Shares in Rurelec were trading up 9.1% at 1.20 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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