Cradle Arc PLC 60%-owned subsidiary Leboam Holdings Pty. Ltd. secured a US$2 million loan facility from Cradle Arc's largest shareholder, PenMin Botswana Pty. Ltd.
The loan is repayable monthly for 24 months and has an interest rate of 13.5% per annum compounded monthly, according to an Oct. 8 release.
The loan will be used to address intermittent breakdowns at the Leboam-held Mowana copper mine in Botswana, which Cradle Arc blamed for its failure to meet its production targets in the third quarter.
Cradle Arc said rehabilitation work on the mine's processing plant will start immediately. Existing operations are expected to be unaffected.