The loan will be repayable over a 24-month period out of available free cash flow, with interest at 13.5% per annum.

Cradle Arc now has enough funds to improve its spare parts inventory and improve and rehabilitate Mowana's processing facilities, which should stop the breakdowns and interruptions that hindered it meeting its September quarter production targets.

PenMin is controlled by the company's CEO Kevin van Wouw. 

The improvement and rehabilitation work will start immediately, with specific focus on pumping, piping, conveying and process control remediation and installation of standby equipment in parallel in areas where a breakdown has an immediate impact on production, and enhanced spare part inventory.

The work is not expected to interrupt operations.

The loan was finalised after Cradle Arc completed the restructuring of certain obligations to ZCI Limited and Messina Copper Botswana, which allowed it to conclude the debt sale agreement between PenMin and Fujax Minerals and Energy.

The company's shares were down 2.98% Monday to 1.14p (US1.49c).