THE delayed sale of its Youanmi gold project has forced Apex Minerals to secure a $1 million facility with an interest rate of more than 50 per cent.
Hong Kong-based Infinity Fame agreed to buy Youanmi in February for $15 million and has taken a $500,000 stake in Apex while the due diligence period is finalised on the project, 82km from Sandstone in the Murchison region of WA.
The $1 million loan adds to $4 million Apex already owes Multiplex heir Andrew Roberts’ AR Management.
The company was already paying 20 per cent interest on its previous loan and agreed to a 22.5 per cent interest on its new one-year facility, which included a $300,000 arrangement fee.
If Apex is unable to pay repay the loan within the year Mr Roberts would net a $500,000 return.
Cash from Youanmi’s sale would be put towards equipment at its Wiluna processing plant and for maintenance work on underground equipment at the mine, Apex stated.
In addition to Youanmi, the company was looking to sell its Wiluna mine. Chinese company Jiangsu Taihua Venture Capital offered Apex a potential $50 million for the project; due diligence investigations continue and the sale is expected to reach completion by the end of May.