The loan facilities are with the National Bank of Commerce in Tanzania, which is ultimately controlled by Barclays Bank.

Each facility is secured against plant and equipment and will release funds for mine expansion at the Tancoal mine and the development of the Tanzacoal mine and “other opportunities”

Intra Energy previously funded all plant and equipment itself.

The facilities are amortised over a three-year term and paid monthly.

The interest rate charged will be a floating rate equal to the bank’s US dollar base interest rate less a 2% per annum deduction.

The current interest rate charged is 8% per annum.

Intra Energy executive chairman Graeme Robertson said the debt facilities would lower the group’s cost of capital.