Kasbah Resources Limited (ASX:KAS) announced that it will receive AUD 5,000,000 in a round of funding on October 15, 2018. The transaction will include participation from existing investor Pala Investments Limited. The company will issue a senior secured convertible loan bearing interest of 12% per annum and an arrangement fee of 2%. The loan will mature on December 31, 2019, subject to a company option to extend the loan by a further one year to December 31, 2020 for a 2% extension fee. Interest will increase to 15% post January 1, 2020 if extension option is exercised. The loan is convertible into common shares at a fixed conversion price of AUD 0.012 per share. The company may repay some or the entire loan at any time prior to maturity subject to conversion rights and a prepayment fee. The transaction is expected to close by December 2018 subject to all applicable approvals including shareholders and satisfaction of customary closing conditions and if the transaction is not closed by January 31, 2019, all amounts owing under the existing loan will become repayable in cash on March 31, 2019. If investor were to convert its entire loan under a fully drawn facility due to mature December 31, 2019, and based on company’s current issued capital, Pala would hold a maximum voting power of approximately 46%. If maturity was extended to December 2020, then the maximum voting power of investor on the same capital base would be 49%.