Bradda Head Lithium Ltd (AIM:BHL, OTC:BHLIF, TSX-V:BHLI) has agreed a US$500,000 short-term loan facility with a vehicle owned and run by directors Jim Mellon and Denham Eke, to provide working capital support.
The facility from Galloway Ltd is unsecured, carries annual interest of 12% and has a one-year term.
It may be repaid early if the lithium development company completes an equity fundraising during the period.
As Galloway is fully owned by director Mellon and managed by director Eke, the transaction falls under AIM related party rules. The independent directors, advised by the company’s nominated adviser, said the terms are fair and reasonable for shareholders.