Rurelec secures new short-term loan facility

18th Feb 2016 10:00

(ShareCast News) - Rurelec has entered into and fully drawn down a short-term loan facility with Bridge Properties for £850,000.The company, which owns, operates and develops power generation capacity, said the proceeds are for working capital and the repayment of the Radix Investments UK loan and accrued interest.Rurelec said the loan, due for repayment on 30 June with interest charged at 1% per month, is to allow the board time to source further, long-term funding.There is no guarantee long-term funding will be available and the group said its cash position continues to be "extremely tight"."The directors are exploring how best to arrange for the company to benefit from the cash generated by the asset in Argentina in which it has a 50% interest."At 1011 GMT, Rurel shares were up 9.1% to 1.20p.