Great Panther Silver extends short-term loan to Beadell Resources' subsidiary

Great Panther Silver Ltd (TSE:GPR) (NYSE:GPL) said it is extending a short-term loan to the Brazilian subsidiary of a company it is buying.

It is advancing US$5 million to the Beadell Resources unit, which will be used to meet working capital requirements.

READ: Great Panther Silver says it’s making good progress on $105M Beadell acquisition

The facility, which carries a 14% annual interest charge, is in place until January 15, though there is the option to extend it for a further 30 days.

The loan will be repaid from the proceeds of two Brazilian tax refunds.

Last week, Great Panther said it is progressing well towards completing the previously-announced $105 million acquisition of Beadell Resources to create a new precious metals producer focused on the Americas.

Beadell is currently the operator of the 100%-owned Tucano gold mine in Amapa State in northern Brazil.

“The acquisition will create a new emerging and growth-oriented precious metals producer focused on the Americas with strong geographic diversity across three leading mining jurisdictions, and a diverse asset portfolio including three producing mines, an advanced stage project, and significant exploration potential,” Great Panther said in its latest release.

Story by ProactiveInvestors