Nagambie Resources (ASX: NAG) has announced an increase in its flexible working capital facility with PPT Nominees Pty Ltd to $3.0 million, up from the previous $2.0 million. The additional $1.0 million will support the company’s new antimony-gold resource drilling program at the Nagambie Mine and provide increased working capital. PPT Nominees is considered a related party, where Mr. Kevin Perrin, a director of PPT, also serves as the Chairman of Nagambie’s Board and is the largest shareholder, holding 18.84% of the company. The Board considered alternative funding options, including equity and commercial third-party lenders, but concluded that the PPT offer was the most commercially beneficial.
The key terms of the increased facility remain largely consistent with the initial agreement from September 2023, with the principal now at $3,000,000 and the facility fee increased by $10,000 to $30,000. The availability period extends to 13 September 2025, with minimum drawdowns of $100,000 and maximum monthly drawdowns of $500,000. Interest is set at 10% per annum, payable quarterly. The facility is secured by a general security deed over the assets of Nagambie and its subsidiaries.
Nagambie Resources obtained a waiver from ASX Listing Rule 10.1 to grant security over its assets in favor of the related party lender without requiring shareholder approval. The company has confirmed that the terms of the facility are fair and reasonable for shareholders, considering the circumstances. Measures have been put in place to ensure that any disposal of assets under the security agreement occurs on arm’s length commercial terms to unrelated third parties, or if sold to the lender or its associate, is subject to shareholder approval. This increased facility provides Nagambie Resources with financial flexibility to advance its exploration and operational activities.
