Elk Petroleum Limited (ASX:ELK) announced that it has entered into an agreement for gross proceeds of AUD 4 million in its recapitalization round of funding from Republic Investment Management Pte Ltd on March 26, 2019. The company will issue unsecured short term loan in the transaction. The company will receive an an initial advance of AUD 0.5 million on or around the date of this announcement, a second advance of AUD 0.15 million one business day after it requests the second advance be provided and a third advance of up to AUD 3.35 million subject to the company securing all required waivers and concessions from its existing lenders and nothing occurring which is reasonably likely to result in the Rights Issue not proceeding in the manner presently contemplated by the parties. The Short Term Loan will be interest-free if the Rights Issue is completed on or prior to 25 June 2019 or otherwise the interest rate will be 20% per annum.