Sihayo seeks additional loans
Monday, August 3 2015 - 03:55 AM WIB
ASX-listed Sihayo Gold Limited said it is in the process of finalising additional Convertible Loan agreements with Provident Minerals Pte Ltd(Provident) and PT Saratoga Investama Sedaya (SIS).
Provident and SIS are both major shareholders of the company and each additional loan is for a total of US$500,000, Sihayo said in a statement Monday.
Terms and conditions are expected to be similar to that previously negotiated, which is that the loans will have a 12-month maturity, 7 percent interest rate and may be converted to shares, at the option of the lender,at a rate of 70 percent 10 day VWAP at the time of conversion.
"Directors have negotiated this outcome in the best interests of the company and all shareholders," Sihayo said.
The previous March 10 convertible loans from Provident Minerals and Saratoga have been fully drawn. The company said its cash balance at June 30, 2015 was $13,000.
The Sihayo Pungkut Gold Project is located within a Generation VII Contract of Work (CoW) located in Northern Sumatra.
The company holds an interest in the Sihayo Pungkut Gold Project.
The project has Mineral Resources of Measured, Indicated and Inferred containing 1.4M gold ounces reported in accordance with JORC 2012within which is contained a combined Proved and Probable Ore Reserve of 554,000gold ounces.
Editing by Reiner Simanjuntak