Nagambie Resources Limited (ASX: NAG) is a mining company focused on gold and antimony exploration. The company is committed to leveraging its resources to enhance shareholder value. With a strategic approach to funding, Nagambie Resources is positioned for continued growth and operational success.
Nagambie Resources has taken a significant step toward expanding its exploration efforts with a $1.0 million increase in its flexible working capital facility.
This expansion raises the total facility from $2.0 million to $3.0 million, demonstrating the company’s commitment to accelerating its mining operations. The additional funding will directly support an extensive antimony-gold resource drilling program at the Nagambie Mine, further advancing the company’s exploration potential.
The financial agreement, secured through PPT Nominees Pty Ltd, remains on highly favourable terms. The loan carries a competitive 10% interest rate per annum, payable quarterly, and allows the company to make early repayments without penalty.
Additionally, the company benefits from increased financial flexibility, with a minimum drawdown of $100,000 and a maximum monthly drawdown of $500,000, ensuring well-managed cash flow.
A key advantage of this financial arrangement is the ASX waiver granted to Nagambie Resources, allowing the company to secure funding without requiring shareholder approval. This not only streamlines the financing process but also reinforces investor confidence by demonstrating the company’s ability to secure necessary funds efficiently.
The Board carefully evaluated multiple funding options, ultimately determining that the increased facility from PPT was the most commercially beneficial solution for the company’s growth.
By strengthening its financial position, Nagambie Resources is well-equipped to execute its drilling program and explore new opportunities.
The company’s strategic decision to increase its capital facility underscores its commitment to unlocking value from its mining assets, ensuring long-term success in the sector.
Chifley Tower, 2 Chifley Square,
Sydney NSW 2000
1300 854 151
© 2023 KOSEC | Kodari Securities Pty Ltd | ABN 90 147 963 755 | FSG | Terms & Conditions | Disclaimer & Legal
© 2023 KOSEC | Kodari Securities Pty Ltd
ABN 90 147 963 755
KOSEC - Kodari Securities does not provide any investment advice, nor is anything mentioned an offer to sell, or a solicitation of an offer to buy any security or other instrument. Anything discussed is for informational purposes only and does not address the circumstances or needs of any particular individual or entity. Investing in the stock market is high risk. Under no circumstances should investments be based solely on the information provided. We do not guarantee the security or completeness of information on this website and are not held liable. Kodari Securities PTY Ltd trading as KOSEC is a corporate authorized representative (AFSL no.246638) which is regulated by the Australian securities and investment commission (ASIC).
