UPMC gets P250M loan for gold project

MANILA, Philippines—Listed United Paragon Mining Corp. (UPMC) disclosed on Friday that it would borrow P250 million to finance the feasibility study of a gold project in Camarines Norte and to meet working capital requirements.

In a disclosure posted on the Philippine Stock Exchange web site, UPMC said its board had approved a proposal to borrow up to P250 million from Alakor Corp. under a convertible loan facility at an interest rate of 10 percent per year.

“The proceeds will be used to finance the cost of conducting a feasibility study for the Longos gold project (in Paracale, Camarines Norte) and for general working capital requirements of UPMC,” assistant corporate secretary Delfin P. Angcao said in the disclosure.

The company said the indicative terms and conditions of the prospective loan were still subject to finalization and documentation.

Under the proposed terms attached to the disclosure, UPMC said proceeds of the loan might be drawn in multiples of P10 million over a period of three years from the date of the first drawdown.

Any amount drawn from the loan facility would be paid in lump sum at the end of the third year following the date of the first drawdown.

Alakor may choose to be paid interest in cash or in shares of stock of UPMC, according to the terms.