Austral Gold Obtains US$7M Secured Loan for Casposo Plant
Austral Gold Obtains US$7M Secured Loan for
Casposo Plant
Sydney, Australia--(Newsfile Corp. - December 23, 2024) -
Established gold producer Austral Gold
Limited
(ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) (
"Austral"
or the
"Company"
) is pleased to
announce that Casposo Argentina Ltd - Sucursal Argentina (Casposo), a branch of the Company's
subsidiary Casposo Argentina Mining Ltd., obtained a US$7 million secured loan from Banco San Juan
S.A., located in Argentina.
Casposo plans to use the proceeds to refurbish the Casposo Plant to support the recently announced
Binding Memorandum of Understanding with ASX-listed Challenger Gold to process mineralised
material from Challenger's Hualilan Project.
Material terms of the Loan:
Amount:
US$7.0 million to be disbursed as follows:
Within 5 business days of signing: US$1.5 million
60-75 days after signing: US$2.5 million
30-45 days after the prior disbursement: US$1 million
30-45 days after the prior disbursement: US$0.5 million
30-45 days after the prior disbursement: US$1.5 million
Key Precedent Conditions:
Each disbursement, except for the initial US$1.5 million, is subject to complying with the
allocation of funds as defined in Use of proceeds.
The second disbursement is also subject to Casposo Argentina Mining Ltd. contributing
US$0.5M to Casposo between November 2024 to February 2025.
Interest Rate:
8% per annum;
Term:
24 months per disbursement, including 6-months grace period (monthly repayments);
Use of proceeds:
Capital Expenditures and Working Capital required to refurbish the Casposo
Plant;
Collateral:
Pledge Guarantee over Casposo's Plant and Mortgage over the farmland where the
processing plant is located.
About Austral Gold Limited
Austral 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
+61 433 292 290
+61 466 892 307
Forward Looking Statements
Statements in this news release 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 news release
include the proposed use of proceeds, meeting the key precedent conditions, and the Company's
anticipation that Casposo will process mineralised material from Challenger's Hualilan Project.
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 especially in light of the effects of the novel
coronavirus, 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. 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/234914