Celamin Holdings N.L (ASX:CNL) announced that it has entered into loan agreements for a private placement of convertible loan gross proceeds of $800,000 on June 20, 2016. The securities will be issued at par. The loan will carry fixed interest rate of 15% per annum and will mature on April 30, 2017. Returning investor, African Lion III, a fund managed by Lion Manager Pty Ltd who holds 33.1% stake in the company will invest $400,000. Another retuning investor,Polo Resources Limited (AIM:POL), who holds 33.2% stake in the company will invest $400,000. The loans can be extended at the investor's discretion, subject to a rollover fee of 5% and an interest rate of 20% per annum from the time of the rollover. In the event of default, interest is payable at the higher rate of 20% per annum. The loan is guaranteed by the company's wholly owned subsidiary. The loan carry secured feature.

African Lion III will provide an initial tranche of $260,000 and $140,000 in another tranche. The initial tranche will require a commitment fee of 35% and second tranche will require a commitment fee of 5%. Polo Resources Limited (AIM:POL) will provide funding until the later of the date of a jurisdiction decision in its favor, or 1 September 2016. A commitment fee of 5% is payable on the funding being received from Polo Resources Limited (AIM:POL).