Aguia secures loan to bolster exploration

Aguia Resources secures $2.69 million loan to fund drilling and exploration across gold, copper, silver, and phosphate projects in Brazil and Colombia.

Aguia Resources (ASX:AGR) has secured commitments for a $2.69 million loan to accelerate the development of its exploration assets across South America, with upcoming drilling programs planned in both Brazil and Colombia.

The financing agreement marks a strategic step for the gold, copper, silver, and phosphate-focused explorer, aimed at boosting resource definition and unlocking value in its five wholly owned projects.

Under the terms of the agreement, the loan must be repaid within 12 months of execution, carrying an annual interest rate of 10%. Aguia also holds the option to extend the repayment period by an additional year, providing flexibility as exploration advances.

Pending shareholder approval, the loan may be converted into equity, either through share allocation at $0.035 per share, or option allocation at an exercise price of $0.045, with the options expiring 24 months from issuance.

Notably, unrelated lenders will secure their loans via shares in Andean Mining, leveraging Aguia’s Colombian asset base to underwrite the financing. Executive Chairman Warwick Grigor has personally committed $500,000 to the loan package, with Aguia proposing to structure this contribution under the same terms offered to third-party lenders.

With this injection of capital, Aguia aims to ramp up drilling and exploration activities across its portfolio, which includes highly prospective tenements in Brazil’s southern regions and Colombia’s Andean belt.