Amarillo Gold (AGC.V) has announces it has received more funds from its credit facility which is linked to a repayment in gold. Under the terms of the agreement, Amarillo is allowed to borrow up to the cash equivalent of 5,000 ounces of gold to continue to work on its Mara Rosa gold project in Brazil.
The company can borrow additional money in tranches of the equivalent of 270 ounces of gold and has drawn almost 3,400 ounces of gold to date. This means that at the current gold price, Amarillo has access to an additional $2M in liquidity in this agreement.
The gold-linked loan facility has an interest rate of 12% (and could be accrued in ounces of gold as well) and a fixed end date of July 31 2019. The repayment could also be triggered by a successful start-up of the Mara Rosa operations and then has to be repaid within 3 months after the start of commercial production at Mara Rosa.
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Disclosure: The author holds no position in Amarillo Gold. Please see our disclaimer for current positions.
