Baron Oil Plc (AIM:BOIL) announced that it has signed a loan facility agreement with InfraStrata plc (AIM:INFA) for gross proceeds of up to £300,000 on January 6, 2017. The loan is secured primarily against the investor's 90% interest in Islandmagee. The loan is for a term of 12 months.

The company is entitled to extend the term of the agreement by an additional 12 months. The loan will convert to an on-demand facility, repayable at any time following company's demand, with effect from April 30, 2017. The loan is subject to a fixed interest rate of 6% of the funds drawn down, which is payable monthly in advance.

The company will also receive an additional £200,000 in the event of a sale or disposal by the investor of substantially all of its assets, and/or a change in control within two years from the date of agreement.