Source: Shutterstock
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Gascoyne Resources (GCY) enters into a $20 million debt facility with major shareholder Deutsche Balaton AG
  • The facility consists two equally priced tranches over a two year term with key terms including a fixed interest rate of 18 per cent per annum payable six-monthly in arrears
  • The company says $10 million of the facility is earmarked to repay debt while the other funds will go towards drilling programs and growth opportunities
  • Gascoyne’s fully owned Dalgaranga gold project in Western Australia has reported encouraging initial results
  • Shares in Gascoyne Resources

Gascoyne Resources (GCY) has entered into a $20 million debt facility with major shareholder Deutsche Balaton AG.

The facility consists of two equal tranches over a two-year term. Tranche 1 will be convertible upon Balaton’s election at 30 cents per share. Tranche 2, meanwhile, will be convertible at Gascoyne’s election at 30 cents, or at Balaton’s election at 36 cents per share.

Key terms for the facility include a fixed interest rate of 18 per cent per annum, payable in six-monthly arrears, an arrangement fee of two per cent at face value and no applying financial covenants or financial ratios.

The company says $10 million is earmarked to pay off debt while the other funds will go towards drilling programs and growth opportunities.

According to Gascoyne, its fully owned Dalgaranga gold project in Western Australia has reported encouraging initial results.

The company intends to put funding towards additional near mine drilling at the project.

Shares were down 1.7 per cent trading at 28.5 cents at 11:53 am AEDT.

GCY by the numbers
More From The Market Herald
Brookside Energy (ASX:BRK)- Managing Director, David Prentice

" Brookside Energy (ASX:BRK) sees its quarter revenue skyrocket

Brookside Energy (ASX:BRK) sees its fourth quarter revenue sales skyrocket 800 per cent on quarter to…
Titomic (ASX:TTT) - Incoming Managing Director, Herbert Koeck

" Titomic (ASX:TTT) reshuffles board

Titomic’s (ASX:TTT) Chief Executive Officer, Herbert Koeck has been appointed Managing Director of the company.
Dreadnought Resources (ASX:DRE) - Managing Director, Dean Tuck

" Dreadnought Resources (ASX:DRE) reports delays in results as activity ramps up

Dreadnought Resources (ASX:DRE) said certain results have been delayed until February due to industry-wide obstructions.

" AnteoTech (ASX:ADO) collaborates with TGA for COVID-19 rapid diagnostic test

AnteoTech (ASX:ADO) receives a request for further information from the Therapeutic Goods Administration.