Aguia Resources (ASX:AGR) has received commitments for a $2.69 million loan to bolster the development of its assets in South America with upcoming drilling and exploration programs.
The company will be required to repay the loans 12 months from the execution date accruing 10% interest per annum, with potential to extend the contract across an additional 12 months.
Subject to shareholder approval, Aguia will be able to convert the loan repayment to share allocation, exercisable at a price of $0.035 per share, or option allocation at an exercise price of $0.045, to expire 24 months from the date of issue.
Unrelated lenders to the company will secure loans with shares in Andean Mining for its rights and interests in the company’s Colombian assets.
Executive Chairman Warwick Grigor has pledged $500,000 of the total funds in support of project development, which Aguia is proposing to be secured under the same unrelated lenders terms.
Aguia Resources is a gold-copper-silver-phosphate explorer with five wholly owned projects spanning Colombia and Brazil.
Write to Maddison Elliott at Mining.com.au
Images: Aguia Resources
