Gold Mineral Resources closed a $2 million uncommitted, on-demand, revolving pre-export loan facility with Scipion Active Trading Fund arranged by Scipion Capital.

The loan facility is available for 360 days from the date of the first draw-down. The term can be extended or the size increased by the mutual agreement of both parties.

Interest is payable on amounts drawn under the loan facility at a rate equal to LIBOR plus a margin of 9.5% per annum. Security on the drawn amounts has been granted over Goldplat Recovery’s tailings facility in South Africa, intercompany loan agreements, contracts and proceeds of sale with gold refiners, and the collection bank account operated by GMR for that purpose. The security is granted by Gold Mineral Resources and other subsidiaries of Goldplat, with Goldplat Recovery signing as guarantor. Various positive and negative undertakings and covenants are provided in the loan facility documentation.

Gerard Kisbey-Green, CEO of Goldplat, said, “We stated in our interim results announced on February 20, 2017 that we were looking at various forms of debt capital raising with a view to restructuring the group balance sheet and I am very pleased to have agreed this loan facility with Scipion. We will use the funds initially to complete stage two of the processing plant expansion at Kilimapesa and to repay the capital made available to Kilimapesa Gold Limited from other group subsidiaries for goods and services rendered. The result will be a cleaner and more appropriate group capital structure and availability of working capital for our recovery businesses.”

Goldplat is a gold recovery services company with two operations in South Africa and Ghana. The company’s strategy is focused on utilizing its cash flow generated from flagship gold recovery operations in Africa to self-fund sustainable growth and expansion of niche gold recovery business model. The company also has a small gold mining and exploration portfolio in Kenya, Burkina Faso and Ghana.