Unicorn Mineral Resources (LSE:UMR), a zinc, lead, copper and silver exploration company listed on the LSE, has agreed principal terms on a £1.25 million unsecured loan facility provided by its chairman, Paddy Doherty, to finance the proposed acquisition of the Klein Aub Copper Mine in Namibia.
The one-year facility will be drawn in a single tranche, with interest of 10% per annum and an establishment fee of 3% (£37,500), both payable at maturity rather than during the term.
The loan carries no conversion rights, leaving existing shareholders undiluted, but the related-party nature of the arrangement is notable: the lender is also the company's chairman.
Proceeds are earmarked for the Klein Aub acquisition price, associated transaction costs, and working capital across Unicorn's operations in Namibia and Ireland.
