Tanami Gold has drifted further into debt to its major shareholder after securing a $12 million loan from AP Finance, a company associated with Tanami director and major shareholder Lee Seng Hui.
The struggling gold explorer, which shut down its only operating mine in April, said in its annual financial statements it had secured a binding letter of commitment for the unsecured loan.
It had also won a nine-month extension to the June 2014 repayment deadline for an existing $15 million debt to Sun Hung Kai International Bank, a company also associated with Mr Hui.
The new loan at 6 per cent a year, plus a non-refundable facility fee of 3 per cent, is also due to be repaid by March 2015.
This year Tanami used the proceeds of a discounted $65.3 million raising to extinguish $57.7 million in loans to AP Finance.
After booking a $66.3 million loss last financial year Tanami had only $1.6 million in cash at June 30 but said it had raised an extra $2.6 million since via the sale of its remaining shares in ABM Resources. It was also seeking another $2.3 million through the return of environmental bonds, after applying to become a part of the State Government's new Mining Rehabilitation Fund.
It ended down 0.2Â¢ at 5.7Â¢.