SolGold executes shirt-term loan with DGR Global

SolGold announced on Friday that its has executed a short-term unsecured loan agreement with DGR Global, to provide up to $7m in funding for the period through to 31 December.

The AIM-traded company said the agreement covers recent advances made by DGR Global, and SolGold’s likely future short-term working capital requirements.

“The loan bears interest of 9.5% per annum and is repayable by SolGold on the earlier of any capital raising event, or 31 December 2016,” SolGold’s statement read.

“Interest accrued on the loan is only payable on the repayment date.”

The firm’s board said DGR Global can, at its sole election, convert all or part of the loan - including accrued interest - into equity of the company in the event that SolGold conducts an equity capital raising, at the same price as third party participants.

DGR Global already holds a 15.99% interest in the issued ordinary share capital of SolGold, it was confirmed.