Source - SMW
Metals Exploration said its two major shareholders have agree to provide it with a a $10m short-term loan.

This would enable the group to meet amounts due on 30 June.

The short-term loan -- in the absence of alternative near-term funding options -- was from shareholders MTL (Luxembourg) Sarl Ltd and Runruno Holdings Ltd. 

They would provide funding on a prorata basis to their shareholding in the company. 

The loan's key terms were in line with the previous $2m shareholder loan provided in May 2017 and would accrue an interest rate of 20% a year for a term of 60 days. 

"Should the Loan not be repaid within 60 days, the interest rate will increase to 30% per annum until repayment," the company said.

Metals Exploration has previously said it was in talks with a mezzanine debt provider for the provision of a working capital facility. 

Negotiations have been progressing and it was the company's current expectation that such a facility will be in place during the next 60 days.   On 30 June 2017 the Group is required to make a payment of almost US $10.0 million to its senior lenders and documentation on the mezzanine debt facility will not be completed in time to facilitate this payment.