Eastern Gas Corporation Limited (ASX: EGA), an Australian natural gas exploration and development company focused on supplying reliable energy to east coast domestic markets with a portfolio featuring prospective tenements in Queensland’s Surat and Cooper Basins, has announced it has signed an indicative term sheet for a proposed A$10 million research and development (R&D) loan facility. This non-binding agreement with RiverFort Global Capital Ltd aims to provide Eastern Gas with access to funding ahead of receiving R&D tax incentive refunds, thereby supporting its ongoing working capital requirements. The announcement was made on 25 September 2026.
The proposed facility outlines a three-year availability period, with an initial drawdown of up to A$1.5 million contingent on a review of the company’s R&D tax incentive position and approvals. Further drawdowns, up to the aggregate A$10 million limit, would require mutual agreement. Each drawdown is structured with a 12-month term, with repayment expected within five working days of receiving the relevant R&D tax incentive refund, or by the 12-month maturity date. The facility includes a fixed interest rate of 9% per annum and various fees, such as a 5% implementation fee per drawdown, due diligence and legal fees, and an introducer fee. Eastern Gas would provide first-ranking security over its R&D rebate receivables.
The agreement also contemplates the issuance of unlisted options to the investor, with the number linked to each drawdown amount and exercisable at a 40% premium to the reference share price. These options would expire on 30 September 2029, and their issuance may require shareholder approval if the company lacks sufficient placement capacity. Managing Director David Spring commented that this indicative term sheet represents a step towards establishing an additional funding source, offering greater flexibility in accessing capital. He reiterated that the proposed facility remains subject to the negotiation and execution of definitive documentation, and Eastern Gas will make a further disclosure once definitive agreements are in place.
