Austral Gold Limited (ASX: AGD), an established gold producer that is building a portfolio of quality assets in the Americas, has announced that its Argentine subsidiary, Austral Gold Argentina SA (AGASA), has obtained a new US$1.3 million unsecured related party loan from Banco Hipotecario (BH). BH is related to Austral’s largest shareholder and Chair, Eduardo Elsztain. The company is focused on production, exploration, and equity investments.
The loan’s proceeds will be used to repay a previous AR$1,600 million loan (approximately US$1.25 million) from BH, which became due on 1 August 2025. This earlier loan had been announced on 30 April 2024 and subsequently renewed on 30 January 2025. The new loan agreement has a term of 12 months and an interest rate of 11%.
The repayment schedule consists of 12 consecutive monthly installments, with the first installment due 120 days from the loan’s receipt. The loan is unsecured. According to the company, following this transaction, its overdraft balance with BH will be approximately ARS$75 million (US$~58,000).
Austral Gold continues to advance its portfolio of assets. Further information is available on the company’s website. The company’s Chief Executive Officer, Stabro Kasaneva, approved the release of this announcement.
