Eastern Gas secures $10M debt facility

• Eastern Gas signed a term sheet for an R&D loan facility of up to $10 million.
• The agreement includes an initial drawdown capacity of up to $1.5 million.
• The funding strategy aims to support ongoing research and development operations.

Eastern Gas (ASX:EGA) has signed an indicative non-binding term sheet with RiverFort Global Capital for a proposed research and development loan facility of up to $10 million.

The proposed agreement establishes a three-year availability period with an initial drawdown limit of up to $1.5 million, contingent upon approval and a review of the entity's tax incentive standing.

Managing Director David Spring said, “Signing this indicative term sheet represents a step towards establishing an additional funding source secured against the company's R&D tax incentive receivables.”

Under the terms, individual drawdowns carry a 12-month term, a 9% fixed interest rate, fees, unlisted options, and repayment linked directly to the receipt of R&D rebates.

The debt facility remains subject to definitive documentation and mutual agreement on drawdowns.

Following the announcement, the Eastern Gas share price was unchanged at $0.16.

Eastern Gas focuses on natural gas exploration and appraisal activities to advance its energy portfolio.