Austral Gold Limited, an established gold producer based in Sydney, Australia, is pleased to announce that Inversiones Financieras del Sur SA (IFISA) has agreed to provide a loan of US$2.0 million to the Company. IFISA is a major shareholder of the company, with two of the Company’s directors, Mr. Eduardo Elsztain and Mr. Saul Zang, also serving as directors and shareholders of IFISA. As such, the loan is considered a ‘related party’ transaction.
The material terms of the loan include an amount of US$2.0 million, an interest rate of 7% per annum, a term of 24 months, and the intended use of the proceeds for working capital. The loan is secured by up to 20,190,791 shares of Unico Silver Limited (Unico) held by Austral Gold Canada Limited (AGCL), a wholly owned Canadian subsidiary of Austral Gold Limited. Shareholder approval will be sought for the grant of this collateral, with IFISA and its related parties abstaining from voting.
Repayment of the loan can be made in cash or in Unico shares, at the discretion of Austral Gold Limited. The terms of the loan, including the security interest, have been approved by the Board of Directors of Austral Gold Limited, excluding the interested directors. The loan is intended to support operations at the Guanaco-Amancaya mine complex, with the option to repay in cash from future gold and silver sales if necessary.
The transaction reflects ongoing financial support from the Company’s major shareholder to fund operations while essential equipment repairs are completed. Austral Gold Limited is focused on building a portfolio of quality assets in the Americas through production, exploration, and equity investments.
For further information, please contact David Hwang, Joint Company Secretary, or Jose Bordogna, Chief Financial Officer and Joint Company Secretary at Austral Gold Limited. Please note that this news release contains forward-looking statements, and actual events or results may differ due to various factors and assumptions. The Company does not guarantee the accuracy of these statements and will not update them unless required by law.
Source: Austral Gold Limited
