Extension of Pala loan facility

Kasbah Resources Limited (Kasbah or Company) (ASX: KAS) advises that Pala Investments Limited (Pala), currently Kasbah’s largest shareholder, has increased and extended its existing loan facility (Pala Loan).

Pala will make available a A$2,000,000 loan to Kasbah, in addition to Pala’s existing loan of A$1,000,000 as previously announced to ASX on 11 August 2016. The funds from the Pala Loan will be used to finalise the 2018 Definitive Feasibility Study, meet development expenditure commitments necessary before a final decision to mine is made on the Achmmach Tin Project, and cover ongoing working capital requirements.Pala will make available a A$2,000,000 loan to Kasbah, in addition to Pala’s existing loan of A$1,000,000 as previously announced to ASX on 11 August 2016. The funds from the Pala Loan will be used to finalise the 2018 Definitive Feasibility Study, meet development expenditure commitments necessary before a final decision to mine is made on the Achmmach Tin Project, and cover ongoing working capital requirements.

Mr Russell Clark, Kasbah CEO, stated:

“We are very grateful for the ongoing support Pala demonstrates in Kasbah and the Achmmach Tin Project. Together with their support and support of our broader investor group, we remain extremely optimistic of a positive outcome for all shareholders in the near future”.

The material terms of the Pala Loan are as follows:
• Increase in loan amount from A$1,000,000 to A$3,000,000 (Total Loan Amount);
• Total Loan Amount interest rate remains unchanged at 12% per annum;
• Establishment fee of 1.5% on increased loan amount of A$2,000,000; and• Extension of maturity date from 30 June 2018 to 31 December 2018 unless Kasbah completes an equity raise prior to such maturity date, at which point the Pala Loan may be requested by Pala to be prepaid, in full or in part, concurrent with the completion of such equity raise. Kasbah continues to be able to prepay the Pala Loan at any time without restrictions or prepayment fees.

Keith Pollocks
Keith PollocksCFO/Company Secretary