Marengo Obtains US$3 Million Loan from Its Major Shareholder
Marengo Mining | Junior Mining Network
Marengo Mining Limited is pleased to announce that, the Company has signed a loan agreement with its major shareholder, Sentient.
Under the terms of the Loan Agreement, Sentient will provide Marengo with a loan facility of US$3,000,000. The Loan accrues interests monthly at a rate of 9% per annum, payable quarterly. The maturity date of the Loan is December 31, 2014.
Subject to applicable shareholder and regulatory approvals, the principal and interest accrued on the Loan may be payable by the Company through the issuance of common shares or other securities convertible into common shares of Marengo.
The Company expects to use the funds obtained from the Loan to fund its working capital requirements and for general corporate purposes.