Citigold Corporation Limited (ASX: CTO) announced on 23 June 2026 that it has received a formal notice of default in relation to its secured loan facility. The notice was issued by DEP Nominees Pty Ltd, acting as trustee for the Carmen Trust, which is the lender for the approximately $1.7 million facility. Citigold Corporation Limited is an Australian gold exploration and development company primarily focused on projects in the Charters Towers region of Queensland, Australia, an area historically significant for gold production.
In response to this development, Citigold stated it is currently engaged in active discussions with the lender to achieve a settlement of the facility. Concurrently, the company is also pursuing negotiations with various funding parties, seeking to secure the necessary capital to settle the outstanding secured debt. Management has affirmed its commitment to diligently work towards resolving the matter as expeditiously as practicable, aiming to address the default swiftly.
The announcement further detailed that the lender has exercised its contractual rights to remove the current directors of Charters Towers Gold Pty Ltd, a wholly-owned subsidiary of Citigold. Importantly, Citigold clarified that Charters Towers Gold Pty Ltd does not hold any mining titles at Charters Towers. This distinction suggests that the removal of directors from this particular subsidiary does not directly impact the company’s primary mining tenements or operational assets in the region. Citigold Corporation Limited concluded its announcement by confirming its ongoing commitment to keep the market informed of further developments regarding the loan facility and its resolution efforts.
