LONDON (Alliance News) - SolGold PLC Friday said it has secured a short term loan worth up to USD7.0 million from its shareholder DGR Global Ltd, which will have an option to convert all or part of that loan into shares in the London-listed miner.
The loan will bear an interest rate of 9.5% per year and will have to repaid at the end of this year, unless SolGold raises any more capital.
DGR Global can, at its sole election, convert all or part of the loan, including accrued interest, into equity of the company in the event that SolGold conducts an equity capital raising.
The loan is being provided to cover recent advances made by DGR Global, which holds a 15.99% stake in the miner, and to cover SolGold's working capital requirements in the short term.
SolGold shares were up 5.1% to 3.23 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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SolGold (SOLG)