Copper-gold explorer SolGold plc (LON:SOLG) has secured a US$7mln loan from two of its directors.
DGR Global Limited will provide the cash to cover SolGold’s short-term capital requirements for the rest of 2016.
Nicholas Mather and Brian Moller – executive director and non-executive chairman at SolGold – are also directors at DGR, which already owns 15.99% of the Australian-based explorer.
Under the terms, should SolGold raise money from a share issue during the loan term, DGR can convert all or part of the loan into shares at the same price as third-party participants.
Should SolGold conduct “any capital raising event” during the period, the loan must be repaid immediately after.
SolGold says the loan has been approved by non-conflicted directors of both companies.
The loan bears an interest of 9.5% per annum and is repayable, along with the interest accrued, on 31 December.
Shares were up 0.14p, or 4.5%, to 3.22p.