Zoltav announced that the company has entered into a loan agreement with ARA Capital Holdings Limited under which ARA Capital Holdings Limited has provided a revolving loan facility for up to USD 9,000,000 (the 'Loan'). ARA Capital Holdings Limited is the parent company of ARA Capital Limited - both entities combined own 44.1% of the issued share capital of the Company. The Loan has been made available for drawdown in two instalments of: USD 2,000,000, which is provided unconditionally and has been drawn down by the Company; and USD 7,000,000, which is secured against the shares of Royal Atlantic Energy (Cyprus) Limited (of which Diall Alliance, which holds and operates the Bortovoy Licence, is a wholly owned subsidiary) and has been drawn down by the Company. The Loan is currently due for repayment by 15 August 2020 unless otherwise extended or converted into equity by mutual agreement, and, in the case of conversion, subject to shareholder approval. The Loan is interest-free save for in the event of a failure to repay on time, in which circumstances the Loan will accrue interest at a rate of 15% per annum. Proceeds from the Loan will be used for general working capital purposes and in support of the operational activities outlined in the Company's Corporate and Operational Update announcement issued on 30 June 2020, including the development drilling programme ongoing at West Bortovoy and the feasibility study and associated engineering and design work ongoing on East Bortovoy. As announced on 30 June 2020, management have held preliminary discussions with a number of prospective providers of project finance for developing East Bortovoy, including around any future equity contribution to the project which may be required to secure such project finance. In the event the Company takes a positive final investment decision on this project in due course, it is currently envisaged that the Loan would be restructured in order to facilitate any required equity contribution or a part thereof. ARA Capital Holdings Limited and ARA Holdings Limited are regarded as related parties as defined by the AIM Rules for Companies. The Loan is a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. The directors of Zoltav consider, having consulted with the Company's nominated adviser, SP Angel Corporate Finance LLP, that the terms of the related party transaction are fair and reasonable as far as shareholders are concerned.