Southern Arc gets loan to fund its Indonesian project
Thursday, July 8 2010 - 02:31 AM WIB
Canadian firm Southern Arc Minerals Inc said on Wednesday that that Michael Andrews, a director of the company, has loaned US$1 million to the company.
?Southern Arc will use the proceeds of the loan to fund its Indonesian subsidiaries in connection with the applications for mining business licenses (IUP's) on its West Lombok and Taliwang (Sumbawa Island) properties,? the company said in statement.
The loan is non interest bearing, has a 3 month term, and may be repaid earlier by the company.
In consideration for granting the loan, the company has assigned its option to acquire 500,000 of the company's shares which are currently owned by Indotan Inc. The option may be exercised until Aug. 15, 2010 at a price of $0.50 per common share. (kanti)