Loan Facility to Supplier

RNS Number : 2152R

Wishbone Gold PLC

07 December 2016

 

7 December 2016

Wishbone Gold Plc

("Wishbone Gold" or the "Company")

Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources

Loan Facility to Supplier

Wishbone Gold is pleased to announce that it has provided a loan facility of US$100,000 to Narh Global Services Ltd ("NGSL"), one of its gold suppliers in Ghana. The purpose of the loan is to assist in the purchase of new washing facilities to increase the production of NGSL's alluvial properties.

The loan does not bear interest but the discount on shipments from NGSL is increased from 3% to 6% for future shipments from the alluvial production. The loan will be repaid out of increased shipments of gold.

Chairman and CEO of Wishbone, Richard Poulden, commented:

"This is a vote of confidence in one of our trusted suppliers. To put this transaction in context, Bank of Ghana interest rates are currently around 25% pa. In addition the Company is lending to company with no proven resource, relying on our own in country due diligence and NGSL's track record as a supplier. We anticipate that we make similar investments in future".

- ends -

 www.wishbonegold.com

Enquiries:

For further information, please contact:

Wishbone Gold Plc
Richard Poulden, Chairman and CEO	Tel: [phone]
Allenby Capital
Nick Naylor / Nick Harriss / James Thomas	Tel: [phone]
Beaufort Securities
Elliot Hance	Tel: [phone]
Damson Communications
Amelia Hubert	Tel: [phone]

 

END

 

 

MSCAKODNBBDDBBK