Brazil-focused Serabi Gold has agreed an extension to the repayment terms for a $3-million loan with Sprott, allowing the Aim- and TSX-listed gold miner and developer the flexibility to fund work brought forward at the Coringa project.
The loan, which was taken out in January, will now have a maturity date of June 30, 2020, and will be repaid in 22 monthly installments, starting at the end of this month. The loan originally had a maturity date of September 30, 2018.
“The issue of the trial mining licences for the Coringa project, which we announced during August, has provided the company with the opportunity to access and evaluate parts of the Serra orebody from underground earlier than we had originally anticipated. This will provide a better understanding of the orebody which will be hugely beneficial in the mine planning and design. It means, however, that we will be incurring development costs earlier than we originally anticipated so extending the term of the $3-million loan provides the company with the flexibility to fund this additional work,” explained Serabi CEO Mike Hodgson.
In consideration for granting the extension, Serabi has agreed to issue to Sprott 145 479 new ordinary shares at a price of 47.25p a share, representing a 10% discount to the closing price on September 14, equivalent to $90 000.