Horseshoe Metals (ASX:HOR) entered into a secured convertible loan agreement for AU$4 million with Obsidian Metals Group, according to a March 28 Australian bourse filing.
The loan has a 12% annual interest rate and is secured by a tenement mortgage over its Horseshoe Lights project, the filing said. It may be converted into shares at AU$0.02 per share or the five-day volume-weighted average price, whichever is higher.
The company plans to use the funds to develop its Horseshoe Lights project, implement its direct shipping ore strategy, for debt repayment, and for working capital, the filing added.
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