Kula Gold Limited and Geopacific Resource Limited have entered into a loan facility agreement worth AUD$500,000 as working capital for the Woodlark Island Gold Project in Milne Bay Province.
Kula announced last month that the loan facility will be made available on a draw down basis with an agreed budget for the purpose of working capital for the next 12 months.
Other terms of the loan include:
- The loan facility is unsecured and free from costs or interest;
- The loan facility matures 12 months after the date of loan agreement or other such date agreed by the parties, repayable at the date of maturity;
- The loan is convertible at the lenders election at market pricing, subject to obtaining all necessary regulatory approvals;
- The lenders may, at its election, set off all or a portion of the loan against the obligation under the Farm-In Agreement to apply for a placement of $300, 000.
The announcement of the loan facility follows an earlier announcement made by Geopacific of new discoveries of gold at the Woodlark Project site.
Geopacific believes the finding indicates that further discoveries of gold will be made in the Kulamadau Deposit area.
Geopacific managing director, Ron Heeks, said: “It’s always encouraging to make a new discovery and it shows the fantastic opportunity we have to elevate our regional exploration program by leveraging the discoveries made in the past and uncovering new zones of regional mineralisation currently hidden beneath the limestone veneer.
“We already know the gold is there, it’s a matter of studying the data to establish which areas present the most attractive targets for our ongoing exploration program.”
(Woodlark Island Gold Project – Picture: The ASIA Miner)