Renegade Exploration (ASX:RNX) has announced it has increased the limit of its existing loan facility to $2 million and extended its maturity to 31 December 2027.
The facility carries interest of 12% per annum, while Renegade will pay a $25,000 fee for the extension.
The $2 million represents the facility limit rather than funds already received. Renegade says $660,000 is currently drawn.
The principal amendments are the increased limit, extended term, and additional security over shares in True North Copper (ASX:TNC).
Renegade received the shares as part consideration for the sale of its interest in the Carpentaria Joint Venture to True North in June 2026.
The shares are subject to escrow restrictions, limiting Renegade’s ability to sell them before the restrictions expire. The loan arrangement instead allows the company to borrow against the shares by providing them as security.
Chairman Robert Kirtlan says the escrow terms affect when Renegade can convert the shareholding into cash.
“The recent deal to sell the Carpentaria Joint Venture interests to True North Copper provides future cash flow for the company to develop its exploration and development assets; however, escrow terms affect the ability of the company to realise cash from the shares received when needed,” Kirtlan says.
“By utilising the financing facility, the company can continue its activities by immediately monetising the True North Copper shares.”
Other terms remain broadly consistent with those announced when the facility was established in July 2023. Renegade did not identify the lender in its latest announcement.
Following the Carpentaria transaction, Renegade notes it remains a major True North shareholder and retains several copper-gold permits in Queensland’s North West Minerals Province.
True North Copper owns copper assets across northwest Queensland, including the Cloncurry and Mount Oxide projects.
Renegade Exploration is an Australia-based minerals exploration and development company with assets in Australia, the US, and Canada.
Write to France Pinzon at Mining.com.au
Images: Renegade Exploration
