Aguia Resources (ASX:AGR) has secured commitments for a $2.69 million loan to support the development of its assets in South America. The funding will facilitate upcoming drilling and exploration programs. Aguia Resources is a mineral explorer focused on gold, copper, silver, and phosphate, with five wholly owned projects across Colombia and Brazil.
The loan agreement stipulates that the company must repay the loans within 12 months of the execution date, with an annual interest rate of 10 per cent. There is a provision to potentially extend the contract for an additional 12 months, offering some financial flexibility to the company.
Aguia will also have the option, subject to shareholder approval, to convert the loan repayment into share allocation at a price of $0.035 per share, or option allocation at an exercise price of $0.045. The options will expire 24 months from the date of issue. Unrelated lenders will secure the loans with shares in Andean Mining for its rights and interests in the company’s Colombian assets.
Executive Chairman Warwick Grigor has committed $500,000 of the total funds to support project development. Aguia proposes that this portion of the loan be secured under the same terms as those of the unrelated lenders, further aligning interests and supporting the company’s strategic initiatives.
