LONDON (Alliance News) - Wishbone Gold PLC on Wednesday said it has provided a loan facility of USD100,000 to one of its gold suppliers in Ghana Narh Global Services Ltd.
Wishbone said it provided the loan to assist in the purchase of new washing facilities, which should increase the production of Narh's alluvial properties.
The loan does not bear interest, but the discount on shipments from Narh has been increased to 6.0% from 3.0% for future shipments from the alluvial production, Wishbone said.
The loan will be repaid out of increased shipments of gold.
"This is a vote of confidence in one of our trusted suppliers. To put this transaction in context, Bank of Ghana interest rates are currently around 25% per annum. In addition the company is lending to company with no proven resource, relying on our own in country due diligence and Narh's track record as a supplier," Wishbone CEO and Chairman Richard Poulden said.
Shares in Wishbone were up 1.0% at 0.808 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Wishbone (WSBN)