Nordex Explosives Ltd. of Kirkland Lake has secured $2 million in funding from NIL Funding Corp.
The funding comes in the form of an unsecured loan agreement, which came into effect on August 26. It matures on Aug. 26, 2017, and pays interest at a rate of 15 per cent per annum. Nordex must make monthly principal payments of $40,000, plus accrued interest, beginning October 1.
NIL currently holds 14.34 per cent of the outstanding securities of Nordex.
This agreement replaces an earlier agreement between Nordex and NIL of convertible debenture financing. Nordex plans to use the net proceeds of the loan for repayment of existing debt and for working capital.
Nordex Explosives has been manufacturing and distributing explosives for the mining, quarry and construction industries since 1970, and is the exclusive supplier of the Buttbuster perimeter control explosive products in Canada.
