murray cod australia (ASX:MCA) has secured a $43 million loan from Westpac to complete the purchase of property adjacent to the Bilbul site near Griffith, New South Wales.

The financing package includes a $30 million term loan, a $10 million overdraft facility and a $3 million equipment loan facility. According to MCA, the funding will help iPartners refinance an existing $20 million facility, help purchase new property, complete capital construction at Stanbridge, and provide working capital to grow fishing stocks for future harvest. It is said that it will be used for reinforcement.

The term loan has a maturity of three years and is secured by the company’s land and water rights and current and future assets. MCA plans to open the facility by the end of December.

CEO Ross Anderson described the arrangement as a “great financing solution for our company”, highlighting the due diligence process carried out by Westpac and the interest savings it generates. “The lower interest rates offered by Westpac should save us more than $1 million a year in interest on our existing debt,” Mr Anderson said. He added that the new facility and MCA’s $20.4 million equity raise in June will give the company “strong financial capacity to execute on its strategy.”

In this regard, MCA has agreed to purchase 10.15 hectares of irrigated land adjacent to the Birburu site for $1 million. The property will include a residence and shed, and will provide space for expansion of MCA’s facilities on the site.

Murray Cod Australia is a vertically integrated aquaculture company that farms Aquna Sustainable Murray Cod, a premium fish farmed in the New South Wales Riverina. The company uses proprietary technology to farm fish in their natural habitat.

The stock closed yesterday at $0.14, an increase of 7.41%.