Fura Gems Inc (CVE:FURA) (OTCPINK:FUGMF) (FRA:BJ43) has arranged an additional bridge financing of US$2.5 million, it said Wednesday.
The bridge loan will be available for Fura to draw down under a demand promissory note issued to Lord of Seven Hills Holdings FZE, and bears interest at a rate of 10% per annum, payable upon demand, according to a statement from the company.
Proceeds of the loan will be used for general corporate purposes, the firm told shareholders.
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The agreement is considered a related party transaction but is exempt from the requirement to obtain a formal valuation as the note is on reasonable commercial terms that are not less advantageous to the company or convertible into equity.
Fura is advancing a portfolio of gemstone assets in Mozambique, Colombia and Australia.
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