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Banro inks gold dore purchase deal, secures US$10M loan

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Banro inks gold dore purchase deal, secures US$10M loan

Banro Corp.said July 18 that it has secured a two-year, US$10 million loan facility fromBaiyin International Investment Ltd.

The loan will be advanced in two installments of each US$5million. The loan carries an annual 10% interest rate until thefirst tranche is outstanding and 11% per annum following receiving the secondtranche of US$5 million.

The proceeds will be used to support current operatingactivities at the Namoyaand Twangizagold mines in the Democratic Republic of Congo during the second half of theyear, and for general corporate purposes.

In connection with the financing, the company has agreed tosell about 50% of the gold dore produced at Twangiza and Namoya until thefacility is repaid.