NR - Signing of Gold Loan Agreement with VTB BankIt looks like they are borrowing about 26,000 ounces of gold from VTB Bank. They will have to pay the loan back in gold also. They will also have to pay interest on the loan - it`s not clear what the interest rate is (or I didn`t see it).
The loan is secured, but the key is to identify who is taking out the loan. It is Mangazeya Mining LLC that is taking out the loan. This is only a division of
Diascia Investments Limited and Mangazeya Mining Ltd - the parents companies.
The company`s
Savkinskoye mining operation is the only one that is under Mangazeya Mining LLC (the borrowing company). The company`s other 2 assets, including its main asset, are held under 2 separate subsidiary companies.
If this is a non-recourse loan then it will only be
Savkinskoye (Mangazeya Mining LLC) that will be pledged as secured security (in case of a default) - not the company`s other assets. It looks like the funds are partly to achieve
Savkinskoye`s goals - not capital funding required to to advance the other assets. Assets pledged as secured security are typically the ones that the loans are used for.
https://mangazeyamining.ru/news/mangazeya-mining-ltd-announces-signing-gold-loan-agreement-vtb-bank-pjsc-fund-expansions-russia/