Frontera Resources shares (LON:FRR) ticked up on Wednesday after the company issued an update on financing.

The oil and gas exploration company announced it had secured a loan of up to $60,000,000 with a New York based fund.

Frontera Resources said the capital would be used to fund the development of its Block 12 license area in Georgia next year.

According to the statement, the loan would be for a term of 5 years with interest rate ranging between 8% and 11%.

Zaza Mamulaishvili, President and CEO, commented:

“We are pleased to have signed this term sheet that sets basis for the new capital inflow in 2019. These funds would be used to accelerate our work programs in the Taribani field as well as throughout Block 12, and would be instrumental in reaching our goal to achieve commercial development of Block 12 in Georgia. We look forward to continuing working with the financiers to finalize the necessary due diligence and definitive agreements, and being able to start utilizing this funding for operations.”

Frontera Resources is listed on the London Stock Exchange. Its operations are located in Eastern Europe in Georgia and Moldova. The company is headquartered in Texas, USA.

Frontera Resources shares are currently up +4.79% as of 11:38AM (GMT) as investors react to the announcement.