Tantalex Lithium Resources (CSE:TTX) Corp revealed that it has struck a loan agreement with a director of the corporation through which it will receive an amount of $2 million loan.
The Toronto-based corporation said it will receive the loan two tranches with $500,000 due by April 24, 2023, and the balance of $1,500,000 by May 1, 2023.
The unsecured loan bears a 10% interest fee and is due 45 days from the date of the execution of the loan agreement.
The firm said the loan will be used for general working capital and advancing the completion of the Titan plant construction and moving forward with the Manono tailings preliminary economic assessment and feasibility study.
The corporation said it didn’t file a material change report regarding the related party transaction at least 21 days prior to the closing of the loan, which it deems reasonable in the circumstances in order to close the loan transaction quickly.
Notably, the Loan has been provided on reasonable commercial terms that are not less advantageous to the corporation than if it were obtained from an arm’s length party.
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