Citigold Corporation Limited (ASX: CTO), an Australian gold exploration and development company focused on its extensive gold resources in Queensland, has provided a market update regarding its secured loan facility. This facility, active for approximately five years, was previously held by various individuals and entities, including company shareholders. Citigold maintained a commercial relationship with these original lenders, with facility details consistently disclosed in quarterly reports in accordance with ASX Listing Rules.
A significant development occurred on 3 June 2026 when the secured loan facility was assigned to DEP Nominees Pty Ltd ATF Carmen Trust (the Lender) without prior consultation. Just two days later, on 5 June 2026, Citigold received a notice of default from the new Lender, also without prior warning. Following a previous company announcement, Citigold, DEP Nominees Pty Ltd ATF Carmen Trust, and Charters Towers Gold Pty Ltd entered into a Forbearance Deed on 3 July 2026. Under this deed, the Lender agreed to temporarily forbear from exercising certain enforcement rights while a resolution for the outstanding indebtedness was pursued.
Despite the Forbearance Deed, on 16 July 2026, Citigold received further correspondence from the Lender alleging additional defaults and breaches, including a lawsuit served by a shareholder which the company deems not material. The Lender has reserved its rights under the secured loan documentation. Citigold confirms it is continuing discussions with the Lender regarding repayment, noting that no court proceedings have commenced. Concurrently, the company is engaged with other funding parties, having received in-principle support from one, though a binding agreement is not yet finalised. Citigold is committed to resolving the matter as soon as practicable and will continue to keep the market informed.
