Consolidated Tin Mines has lined up a $30 million loan to help fund the acquisition and restart of Auctus-owned operations in the Chillagoe region, west of Cairns.
The company in 2020 finalised negotiations with the administrator of the Auctus businesses to acquire 100 per cent of the shares in Auctus via a Deed of Company arrangement for $26.5 million.
The acquisition includes the Mungana processing plant, the Mungana mine and the King Vol polymetallic mine.
In an announcement to the ASX today, Consolidated Tin Mines said it had
entered into an unsecured loan agreement with 53.6 per cent shareholder Cyan Stone.
Cyan Stone had agreed to advance up to $30 million to the company,
which would be used to fund the balance of the consideration payable in respect of the Auctus acquisition (being $16,800,000), it said.
It would also be used for general working capital purposes, which included provision of funds to bring Auctus back into production.
“We are extremely pleased with the ongoing strong support that the company’s largest shareholder, Cyan Stone has shown in CSD and the company’s future,” managing director Ralph De Lacey said
The loan agreement is being provided on an unsecured basis over a three-year term at an interest rate of 6 per cent per annum.
This new loan is in addition to an existing loan of $22 million from Cyan Stone which is currently drawn down to $17,529,644 with $4,470,356 currently available.
Consolidated Tin Mines said it was continuing to work with auditors KPMG to complete and lodge the company’s December 31 2019 review and June 30 2020 audited accounts on or before February 26, 2021.