Citing "serious financial difficulty," Melior Resources Inc. said Aug. 21 that it again amended a loan facility agreement with Pala Investments Ltd., increasing it by about US$2.0 million, to about US$23.0 million.
Melior will use proceeds as working capital as part of a two-month plan to ramp up its Goondicum ilmenite mine in Queensland, Australia. The additional US$2.0 million will come in two tranches of US$1.0 million each.
The company initially signed a loan agreement with Pala on Aug. 9, 2018, for US$12.34 million. This was increased to US$15.8 million Feb. 4 and to US$21 million June 6.
In November 2018, the company said it produced first ilmenite and apatite at Goondicum. In December 2018, Melior scrapped its proposed merger with Metallica Minerals Ltd. as the latter was not able to satisfy certain conditions by the completion deadline.
