Talisker Resources (TSX:TSK) has announced that its wholly owned subsidiary Bralorne Gold Mines has entered into a loan agreement with 2Shores Capital for up to C$11 million ($11.23 million).
The funds received will be allocated to the acquisition of ore sorting and processing equipment for the Bralorne Gold Project in British Columbia.
The loan agreement outlines an initial advance of C$2.4 million, with subsequent advances of up to C$8.6 million in aggregate, paid in one or more tranches.
The facility carries a term of 36 months from closing, with blended monthly payments of principal and interest fully amortising the loan over the term.
A 14% interest rate on amounts drawn will be applied, with a closing fee of 1% on each advance.
President and CEO Terry Harbort says the loan provides Talisker with non-dilutive capital for the ore sorting and processing equipment that the company needs for its processing strategy.
“Structuring the financing against the equipment itself, with no encumbrance on our mineral tenure, preserves the strength of our balance sheet as we advance toward our preliminary economic assessment later this year,” Harbort says.
Talisker Resources is a junior resource company involved in the exploration and development of gold projects in British Columbia, Canada.
Write to Amy Rotman at Mining.com.au
Images: Talisker Resources
