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East Energy Resources Makes First Drawdown On Noble Group Loan Facility

East Energy Resources (ASX: EER) has made the first drawing on the new loan facility provided by Noble Group.

Under the facility, Noble is providing East Energy $13.48 million to repay its debt to Idalia Coal and for Idalia to repay its loan to Noble, Asia's largest diversified commodities trading company.

This leaves East Energy with about $5 million to draw down for working capital purposes.

"It is great to have the Idalia transactions completed and to have access to this facility to enable the further development of our Blackall project and now our new Idalia tenements as well," East Energy managing director Mark Basso said.

"We are currently finalising our exploration plans going forward, now that we have several more tenements to consider. It is a very exciting time for East Energy."

The working capital available to be drawn from the facility will enable the company to maintain its exploration program at the Blackall Coal Project in Queensland.

Facility terms

Interest on the facility may be capitalised for the term of the facility, at the discretion of East Energy.

The applicable interest rate is the 6-month bank bill swap rate plus a margin of 7.0%.

East Energy has provided security for this facility with a personal property security over the Company's assets and a mortgage over the tenements held by East Energy and Idalia.

Funding will be provided on a staggered basis.

Repayment of the facility can be made at any time and without restriction within the five year term, with a six month extension available to East Energy.

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