PERTH (miningweekly.com) – Junior GBM Resources is weighing its options after its financier, National Federal Capital (NFC), failed to deliver on a loan agreement.
The two parties in October entered into a A$10-million loan agreement to advance the redevelopment of the Mt Coolon gold project, in Queensland. Under the terms of the agreement, the UK-based NFC would have advanced the first tranche of A$5-million by November 21, with the second tranche of A$5-million due by the end of February.
GBM told shareholders on Monday that NFC had provided only A$1.5-million of the first tranche payment on December 7, with the balance rescheduled to January 13. However, this payment was missed.
GBM said that it was currently in discussions with NFC, which was in breach of the terms of the loan agreement, and was considering its options.
The first tranche loan was to be repaid by the delivery of 6 057 oz of gold, in equal instalments over four quarters, starting at the end of November 2018.
The second tranche loan was to be repaid in cash in equal instalments of A$2.5-million a quarter, starting at the end of March 2019.