West African gold miner Avesoro Resources has entered into a loan agreement for an additional working capital facility of up to $5-million, payable in two tranches, with Avesoro Jersey (AJL) to assist with satisfying the company’s near-term cashflow needs.
The company intends to draw down a first tranche of $3.5-million in the coming days, with the funds being made available for general working capital purposes.
The second tranche of $1.5-million is drawable until December 31, at the mutual agreement of both parties.
The tranches of the new facility are due to be repaid in full no later than 12 months following drawdown of the relevant tranche. Following drawdown of the first tranche, the balance of working capital loans provided by AJL to the company is just over $45.7-million.
Further, in a separate statement on Monday, Avesoro announced that it had filed a directors’ circular in connection with the offer made by AJL in October to buy all of the issued and outstanding common shares of the company not already owned by AJL or any of its affiliates.
Avesoro’s board of directors, following the unanimous recommendation of the special committee of the board of directors, has determined that the offer is in the best interests of the company and fair to its minority shareholders.
The board has recommended that minority shareholders accept the offer.