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RNS Number : 2002O

Bullabulling Gold Limited

04 August 2014

4 August 2014 ASX Code: BAB, AIM Code: BGL

Bullabulling Gold Limited ("Bullabulling" or the "Company")

Loan Facility and Related Party Transaction

Loan facility provided by Norton

Pursuant to the announcement entitled 'Board Changes / Loan Facility' released on 4 August 2014, the Company hereby announces further details of the loan facility of AU$2 million (the "Loan Facility") provided to Bullabulling by Norton Gold Fields Limited ("Norton") to meet ongoing definitive feasibility study costs and day to day working capital requirements. While the Loan Facility is currently unsecured, Norton has the right to secure the loan in the event that Bullabulling formally enters into a charge agreement with Norton in respect of the Company's assets.

Loan Facility funds will be advanced to Bullabulling on a drawdown basis, with draw down request to be made by Bullabulling as required per its monthly cash flow budget forecast, as amended from time to time. Norton will provide immediately available funds of the amount specified in each draw down request within 5 business days of the draw down request being made. For the avoidance of doubt, Norton cannot refuse a draw down request unless it would result in the total amount drawn exceeding the principal sum of AU$2 million (the "Principal Sum") or unless Bullabulling is in material breach of the Loan Facility agreement.

Bullabulling will repay the Principal Sum to Norton at the date on which it has secured sufficient funds to repay the loan in full without prejudicing any creditors or future expenditure commitments or such later date as may be agreed by Bullabulling and Norton (the "Termination Date"). Norton may set off the loan balance at any time against its share of any entitlements pursuant to a fundraising by the Company.

Bullabulling will pay to Norton interest on the outstanding balance of the Principal Sum calculated at 8% per annum (the "Specified Rate") from the date the Principal Sum (or any part thereof) is lent until the date the Principal Sum (or any part thereof) is repaid in full. All interest accrued shall be capitalised by adding such amount to the Principal Sum and such interest shall thereafter form part of the Principal Sum. Interest accrued on the Principal Sum is payable in arrears on the Termination Date.

Related Party Transaction

The loan agreement between Bullabulling and Norton qualifies as a related party transaction under AIM Rule 13 by virtue of Norton being a Substantial Shareholder in the Company. The independent director of the Company, Mr Peter Mansell, having consulted with the Company's nominated adviser, Westhouse Securities Limited, considers that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

For information, contact:

 
 David McArthur                   Westhouse Securities Limited 
  Bullabulling Gold Limited        (UK Broker & Nominated Adviser) 
  Level 2, 55 Carrington Street    Martin Davison / Hugo Rubinstein 
  Nedlands, WA, 6009, Australia    Tel: +44 20 7601 6100 
  Tel: +61 8 9386 4086 
-------------------------------  -------------------------------------- 
 Neil Boom                        John Gardner / Rupert Dearden 
  Gresham PR Ltd (UK media)        MAGNUS Investor Relations. Corporate 
  Tel: +44 7866 805 108            Communication. (Australian Media) 
                                   Tel: +61 8 6160 4900 
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This information is provided by RNS

The company news service from the London Stock Exchange

END

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