Suvo Strategic Minerals Ltd (ASX:SUV) has secured a 12-month extension on its A$1 million in debt funding to support its geopolymer cement and concrete strategy.
SUV executive chairman Aaron Banks said: “Suvo is pleased to receive a 12-month extension on the debt facility secured against Lal Lal as this will provide us working capital to deploy and support our geopolymer cement and concrete strategy. The continued growth in sales in our kaolin operation means revenues are now more than covering operational costs.”
The debt funding, provided by a private lender Tember Nominees Pty Ltd, was advanced on 1 December 2023 and previously repayable on November 30, 2024.
Suvo used its non-core asset, being freehold land it owns at Lal Lal in Victoria, as security against the loan. Lal Lal is an operating mine producing limited feedstock for specific product applications. However, less than 5% of Suvo’s mining activity occurs at Lal Lal, with the majority of the feedstock coming from the Pittong mine, which is roughly two kilometres from the Pittong processing plant. As such, Suvo considers Lal Lal a non-core asset and has decided to use the land as security to generate funding.
The news of the A$1 million debt funding extension follows news last week from the company advising that it has executed a cooperation agreement with the manager of the Bantaeng Industrial Park in Indonesia ahead of a potential commercial arrangement, under which Suvo would incorporate an industrial slag by-product into its geopolymer mix-design to make an eco-friendly geopolymer cement.
Read more: Suvo Strategic Minerals to co-operate with Bantaeng Industrial Park in Indonesia