Austral Gold Assigns US$2M of Related Party Loan

Rhea-AI Summary

Austral Gold (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) announced the assignment of US$2 million from a US$3.5 million unsecured credit facility originally held by Inversiones Financieras del Sur SA (IFISA). The assignment, effective from August 30, 2024, was distributed between two Company directors: Eduardo Elsztain accepting US$1.7 million and Saúl Zang accepting US$0.3 million.

IFISA, which is the Company's largest shareholder, had previously disbursed US$2.5 million under this facility. Both Elsztain and Zang are directors and shareholders of IFISA. All other terms of the credit facility remain unchanged from the original announcement.

Positive

• Access to US$3.5M credit facility providing financial flexibility
• US$2.5M already disbursed from the facility

Negative

• Increased related-party debt exposure
• Further financial obligations to company directors

Sydney, Australia--(Newsfile Corp. - February 27, 2025) - Established gold producer Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) ("Austral" or the "Company") is pleased to announce that Inversiones Financieras del Sur SA ("IFISA") assigned and transferred US$2 million a US$3.5 million unsecured credit facility dated 30 August 2024 to two of the Company's directors.

Eduardo Elsztain has accepted the assignment of US$1.7 million, and Saúl Zang has accepted US$0.3 million of the unsecured credit facility, effective from the date of the facility.

IFISA is the Company's largest shareholder and Eduardo Elsztain and Saúl Zang, are also directors and shareholders of IFISA.

Prior to the assignment, IFISA had disbursed US$2.5 million under the US$3.5 million unsecured credit facility dated and disclosed on 30 August 2024.

All other material terms remain as previously announced by the Company.

About Austral Gold

Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the Americas based on three strategic pillars: production, exploration and equity investments. Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets.

For more information, please visit the Company's website at www.australgold.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Release approved by the Company's Chief Executive Officer of Austral Gold, Stabro Kasaneva.

For additional information please contact:

David Hwang	Jose Bordogna
Joint Company Secretary	Chief Financial Officer and Joint Company Secretary
Austral Gold Limited	Austral Gold Limited
david@confidantpartners.com	jose.bordogna@australgold.com
+61 433 292 290	+61 466 892 307

 

Forward Looking Statements

Statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical, and consist primarily of projections - statements regarding future plans, expectations and developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news release include that Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets.

All of these forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation, uncertainty of exploration programs, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the capital markets especially in light of the effects of the novel coronavirus, uncertainty in the measurement of mineral resources and reserves and other risks and hazards related to the exploration of a mineral property, and the availability of capital. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Austral cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. Austral's forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and Austral does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242765

FAQ

How much of the AGLDF credit facility was assigned to Eduardo Elsztain?

US$1.7 million of the credit facility was assigned to Eduardo Elsztain.

What is the total value of the unsecured credit facility for Austral Gold (AGLDF)?

The total value of the unsecured credit facility is US$3.5 million.

How much has IFISA disbursed under the AGLDF credit facility as of February 2025?

IFISA had disbursed US$2.5 million under the US$3.5 million facility.

When was the original AGLDF credit facility established?

The credit facility was established on August 30, 2024.