Angel Mining gets extra £3m loan

ANGEL Mining, which was in breach of certain financial agreements, said its lender had agreed to provide an additional bridging loan of $4.5m (£3m).

By The Newsroom

Published 12th Jul 2010, 10:58 BST

Updated 12th Jul 2010, 11:59 BST

The agreement will give Angel sufficient capital to move into full production.

The Greenland-focussed company also said it was in advanced talks with another party for a new $100m (66.75) debt facility, which would include equity subscription rights.

On May 24, Angel Mining, based in Kirkbymoorside, had said it was in breach of financial agreements due to delays in full-scale gold production and securing finance for its subsidiary.

The company, formerly known as Angus & Ross, said it would use the bridging loan provided by FBC Holdings Sarl to fund operations at Nalunaq gold mine and for general working capital purposes, until it found a longer-term financing solution.

Angel Mining's total debt towards FBC now stood at $21m (14.01m) plus accrued interest.