LONDON (Alliance News) - Precious metals trading and exploration firm Wishbone Gold PLC on Monday said it has secured a USD3.0 million two-year loan facility with Sanderson Capital Partners.
The facility can be drawn down in USD100,000 instalments over the course of the maturity, Wishbone said. It carries a 2.0% interest rate per year, with 0.5% payable on each trade of precious metals where the facility is used either to support a letter of credit or in direct lending.
The loan will expire on June 6, 2018.
A 10% commitment fee for the loan will be payable in Wishbone shares, to which end the company will issue 3.8 million shares at 0.54 pence per share, the price at which the shares closed on Friday.
"I believe this is an excellent deal for Wishbone. Sanderson have recognised the lower risk opportunity of the project with a low interest rate and other fees linked entirely to the success of our operations," said Richard Poulden, Wishbone's chairman and chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Wishbone (WSBN)