New World Resources Limited (ASX: NWC), a company focused on discovering and developing mineral resources, today announced it has entered into a binding Loan Facility Agreement with Kinterra for a US$6.5 million unsecured loan. New World Resources is advancing the Antler Copper Project in Arizona, USA, towards development. The loan comes amidst Kinterra’s ongoing unconditional off-market takeover bid to acquire all shares in New World at $0.067 per share.
The Loan Facility is expected to be fully drawn this week, with the proceeds earmarked for several key project advancements. Specifically, the funds will be used to meet Arizona State bonding requirements, secure essential project land parcels, and provide general working capital. A portion of the loan will also cover transaction costs related to the ongoing takeover bid.
The loan facility carries an interest rate of 10.0% per annum. The maturity date is set for two years from the date of the first drawdown, with the possibility of extension at the lender’s discretion. New World Resources retains the right to repay the loan at any time prior to the maturity date. The facility is unsecured.
According to the announcement, the Loan Facility agreement has been authorised for release by the Managing Director, Nick Woolrych. Further details regarding the terms of the Loan Facility are available in Appendix A of the announcement.
