- Ranchero Gold Corp. (RNCH) has signed a letter of intent (LOI) for a US$500,000 working capital loan from American PT Metals through its wholly-owned subsidiary Mexico Minerales y Metales Earth S.A. de C.V.
- The principal amount of the loan bears an annual interest rate of 12 per cent
- It will be convertible during its two-year term into common shares of the company at a price of C$0.085 per share in the first year and $0.10 in the second year
- The company anticipates closing on the loan as soon as a definitive agreement is completed and all required approvals are received
- Ranchero Gold Corp. is a gold exploration and development company currently focused on its 100-per-cent-owned Santa Daniela project located in Sonora, Mexico
- Ranchero Gold Corp. was unchanged at C$0.075 at 1:51 PM ET
Ranchero Gold (RNCH) has signed a letter of intent (LOI) for a US$500,000 working capital loan from American PT Metals.
The loan is being arranged through Ranchero’s wholly-owned subsidiary Mexico Minerales y Metales Earth S.A. de C.V.
The principal amount of the loan bears an annual interest rate of 12 per cent.
It will be convertible during its two-year term into common shares of the company at a price of C$0.085 per share in the first year and $0.10 in the second year.
American Metals is an investment fund focused on natural resources.
In the event that Ranchero completes a financing in excess of $1 million during the term of the loan, the loan will become immediately payable, and Ranchero will use commercially reasonable efforts, subject to TSX Venture Exchange approval, to complete a share for debt application in respect of the Loan on the same terms as the financing.
The company intends to use the proceeds of the loan to meet its general working capital requirements and fund ongoing exploration efforts currently underway at its flagship Santa Daniela gold project.
Gustavo Mazon, a control person of the company, is also a control person of American Metals. Therefore, the loan would be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (MI 61-101).
The company anticipates closing on the loan as soon as a definitive agreement is completed and all required approvals are received.
Ranchero Gold Corp. is a gold exploration and development company currently focused on its 100-per-cent-owned Santa Daniela project located in Sonora, Mexico.
Ranchero Gold Corp. was unchanged at C$0.075 at 1:51 PM ET.