1st Jul 2014 10:23
LONDON (Alliance News) - Scotgold Resources Ltd Tuesday said that RMB Australia Holdings Ltd has agreed to extend the termination date of Scotgold's GBP1.5 million loan facility until August 11.
The gold exploration and development company with operations in Scotland said the relatively short extension allows its shareholders to vote on a possible fundraising deal, at the company''s annual general meeting Monday.
The fundraising deal, announced in February, would see three strategic investors, including Nat le Roux, the former chief executive of IG Group PLC and non-executive director of the London Metal Exchange, take significant holdings in the company for a payment of up to AUD1.8 million
Scotgold said that as long as the fundraising goes ahead, AUD1 million will be used to repay a portion of the facility and accumulated interest, leaving a balance of GBP1.2 million owed to RMB.
The company said the remaining cash from the fundraising deal would help fund the company's general operations.
In June, Scotgold said that RMB is also seeking permission from its investment committee to further extend the term of the loan to December 31, 2015, if the fundraising plan goes ahead.
Scotgold Resources shares were up 4.45 to 0.470 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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