Haranga Resources has signed a Binding Terms Sheet with Sanjiv Noronha for an unsecured finance facility of A$200,000. The funds will primarily be used to satisfy Mongolian exploration and mining licence commitments.
Funds will also help meet costs associated with future funding prospects and for working capital purposes.
The ASX-listed company has Mongolian prospects, including the flagship Selenge Iron Ore Project in the country’s north.
A JORC-compliant resource has been defined covering three clustered deposits within the Selenge project. The combined total resource is 254 million tonnes of iron ore at an average in situ grade of 17.2% iron for 44 million tonnes of contained iron metal, 99.7% of which is in the measured and indicated categories.
The terms sheet is available immediately from the date of signing to three months after the first drawdown. Interest is at a daily fixed rate of 6% per annum capitalised monthly and repayment is set for December 31, 2016, or on completion of any equity or debt raising, whichever is sooner.
Haranga is currently negotiating future fundraising opportunities.