RE: Solgold Finance AG1 Oct 2021 11:37
The devil is in the detail...
Looks like we all missed this in Note 10 to the Accounts:
"In September 2020 SolGold plc transferred its investments and associated intercompany loans in ENSA (85%) and SolGold Ecuador S.A. (100%) to a newly established wholly-owned subsidiary called SolGold Finance AG.
Upon the transfer of the investments and associated intercompany loans from ENSA and SolGold Ecuador S.A. to SolGold Finance AG, a new back-to-back loan agreement was implemented between SolGold plc and SolGold Finance AG. The key terms of this new back-to-back loan agreement include:
• 10-year loan maturity period
• 3.5% annual interest rate, calculated daily
• Interest accrues and is due on or before 10 years, or thereafter by agreement between the parties
• SolGold plc has the ability to call the loan for repayment at any point on or before 10 years from the date of issue
• SolGold Finance AG may prepay the whole or any part of the advances made by SolGold plc at any point without notice, penalty or bonus"
Opening Balance June 2020 NIL
Reallocation of loans 173,497,993
BLA offset (15,619,579)
Advances in the year 5,001,463
Interest accrued in the year 4,519,890
Closing Balance 167,399,767