DGR Global : 1 July 2016 – Loan Agreement Executed with SolGold Plc

Microsoft Word - 2016.07.01 - ASX Announcement - Loan Agreement with SolGold DGR Global Limited 1 July 2016 Loan Agreement Executed with SolGold Plc

The Directors of DGR Global Limited (ASX: DGR) wish to advise that the Company has executed a short‐ term unsecured loan agreement with SolGold Plc to provide up to $7 million in funding for the period through to 31 December 2016. The loan agreement covers recent advances made to SolGold and its likely future short‐term working capital requirements.

The loan bears interest of 9.5% per annum and is repayable by SolGold on the earlier of any capital raising event, or 31 December 2016. Interest accrued on the loan is only payable on the repayment date.

DGR Global can, at its sole election, convert all or part of the loan, including accrued interest, into further equity as part of a SolGold capital raising, and at the same price as third party participants, subject to DGR Global and SolGold obtaining all necessary regulatory approvals.

DGR Global currently holds a 15.99% interest in SolGold.

Brian Moller and Nicholas Mather are Directors of both SolGold and DGR Global. Accordingly, the loan agreement was approved and executed by the non‐conflicted Directors of each company.

On behalf of the Board Karl Schlobohm Company Secretary

Electronic copies and more information are available on the Company website: www.dgrglobal.com.au

Email: [e-mail] For further information contact:
Mr Nicholas Mather Managing Director Ph: 07 3303 0680	Karl Schlobohm Company Secretary Ph: 07 3303 0680	Pru Maclean Investor Relations Ph: 07 - 3303 0635

About DGR Global Limited

DGR Global's business is the creation of resource exploration development and mining companies.

The business uses the skills of a core team of talented geoscientists to identify resource projects capable of yielding world class discoveries of attractive commodities.

This is achieved through:

• The identification of commodities with a favorable 20 year price outlook.

• Geological terranes with:

  • A demonstrated strong endowment for that commodity;

  • An under‐explored history;

  • Opportunity for the application of recently developed exploration techniques;

  • Jurisdictions with improving socio‐economic and regulatory frameworks;

  • Extensive available tenures.

DGR provides initial seed funding and management support to secure these assets in subsidiaries and develop these assets to more advanced funding stages. The Company has a pipeline of projects in daughter companies at various stages of emergence, and in early 2015 crystalised a significant return through the sale of its 15% holding in Orbis Gold for $26million. Further development of its holdings in AIM listed SolGold and IronRidge Resources and ASX Listed AusTin Mining, Dark Horse Resources and Armour Energy and unlisted Archer Resources, are expected over the coming years.

The previous resource exploration and funding activities of DGR's key personnel underscore the opportunities provided by the DGR business model.