LONDON (Alliance News) - Frontera Resources Corp said Wednesday it signed a term sheet for a loan of up to USD60 million with a New York-based fund.
The oil & gas exploration and development company said that the funding will be used to cover the costs of its operations at Block 12 license area in Georgia in 2019.
Under the financing agreement, the loan would be on a delayed senior secured basis and the initial availability would be USD45.0 million. If agreed, the loan would cover a term of five years with interest rate varying between 8% and 11%.
The completion of the transaction and the entry into definitive agreements is subject to successful completion of due diligence and field survey to be undertaken by the lenders, Frontera added.
Chief Executive Officer Zaza Mamulaishvili said: "We are pleased to have signed this term sheet that sets basis for the new capital inflow in 2019. These funds would be used to accelerate our work programs in the Taribani field as well as throughout Block 12, and would be instrumental in reaching our goal to achieve commercial development of Block 12 in Georgia."
Frontera shares were trading up 5.9% at 0.36 pence each.
