Aldridge Minerals’ board of directors approved a proposed credit facility of up to $40 million to be made available by Banka Kombetare Tregtare. Implementation of the facility remains subject to signing of definitive documentation with a view to advancing funds in September 2016.

If the facility is established, Aldridge intends to use a portion of it to fully repay outstanding principal of $19.5 million along with outstanding accrued interest and expenses of approximately $3.7 million under an existing loan facility from Orion Fund JV. Remaining availability would be used by the Aldridge to fund its ongoing land acquisitions and working capital requirements.

The facility would have a two-year term and bear interest at an annual rate equal to 12 months LIBOR plus a 6% margin, subject to a minimum aggregate interest rate of 9%. Interest would accrue and be capitalized on an annual basis for the term of the facility. Aldridge would pay a loan administration fee of 1% on all advances made.

“I am very pleased to have received strong interest from European and regional banks for the financing of the Yenipazar Project, in addition to interest received from North American financial institutions,” said Han Ilhan, president and CEO of Aldridge Minerals. “As a result of our recent discussions regarding alternatives for interim financing, we appreciate having the support of BKT, the leading bank in Albania. Following a review of various financing alternatives our management team and board of directors have determined to pursue the proposed BKT transaction in light of our short and long term goals.”

Aldridge is a development stage mining company focused on its wholly owned Yenipazar polymetallic VMS Project in Turkey.

BKT is the oldest and largest commercial bank in Albania and is headquartered in Tirana, the country’s capital.