JOHANNESBURG (miningweekly.com) – TSX- and Aim-listed Avesoro Resources has obtained a $35-million unsecured loan facility from its majority 73.5% shareholder, Avesoro Jersey.
The West African gold producer may draw down the funds in multiple tranches before December 31, 2020, with funds available for general working capital purposes.
“This additional funding facility from our major shareholder provides the company with additional flexibility to further reduce costs, maximise margins and accelerate the elimination of legacy issues,” said Avesoro lead director Loudon Owen.
Interest will be charged on drawn amounts at a fixed rate of 3.75% a year, with the facility due to be repaid by December 31, 2022.
“To date, the company has drawn down $16.6-million of the facility to meet liabilities arising on the termination of legacy procurement contracts, make advanced payments to suppliers to secure lower unit cost pricing, and to accelerate the acquisition of capital items that will increase process plant throughput,” Owen said in an update to shareholders.