Cannindah Resources (ASX:CAE) has executed a $2 million secured loan facility to continue exploration across its Mt Cannindah copper-gold project in Queensland.
The 12 month facility has a commercial interest rate of 15% that can be extended annually up to a maximum term of 3 years at the election of CAE.
It will issue 12 million shares to lender MCM Advance Pty Ltd as a loan establishment fee.
Mt Cannindah represents a large (greater than 9 square kilometre) high level “porphyry style” copper-gold-molybdenum mineralised system.
Trenching in the vicinity of the location of the float samples exposed high grade gold bearing quartz vein producing results of up to 17.7 grams per tonne gold.
It also identified a shallowly buried gold mineralised zone where significant gold grades occur over potentially minable widths including 4 metres at 1.49g/t gold and 2 metres at 4.12g/t.
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