Sutter Gold Mining (TSXV:SGM,OTCQX:SGMNF) has closed a secured short-term credit facility for up to US$12 million with RMB Australia Holdings Limited.
As quoted in the press release:
The Facility is a bridge loan to provide funds required until achievement of positive cash flow from the Project. The Facility will be available for draw down through to April 30, 2013, with a final repayment date of June 30, 2013.
The Company has, among other things, also undertaken to: (i) close a US$1 million equity private placement by October 28, 2012; and (ii) raise at least an additional US$500,000 in capital on a best efforts basis as soon as possible and apply such proceeds raised during the term of the Facility in excess of $1.5 million to the repayment of the Facility. The equity raise is included in a new non-brokered private placement financing of up to 16,666,667 common shares at a price of US$0.30 per share for gross proceeds of up to US$5,000,000 (the “Offering”).