Besra Gold Announces: US$10,000,000 Received from Quantum
Perth, October 11, 2023 - Besra Gold Inc. (ASX: BEZ) (ARBN 141 335 686) (Besra or the Company) refers to its ASX announcement dated 20 September 2023 and is very pleased to advise receipt of US$10,000,000 from Quantum Metal Recovery Inc (Quantum) in accordance with the terms and conditions of the US$300 million Gold Purchase Agreement (GPA) announced to ASX on 9 May 2023.
Quantum is Besra's largest CDI holder and under the terms of the GPA, approved by shareholders on 25 July 2023, the Company has agreed to sell to Quantum a quantity of refined gold from the Bau Gold Project (or any other gold project owned by the Company or its subsidiaries at any time) until:
- 3,000,000 ounces of refined gold has been received by Quantum; or
- aggregate deposits in an amount equivalent to US$300,000,000 (Facility) have been received by the Company from Quantum.
Pursuant to the Facility, Besra has now received a total of US$15,000,000 from Quantum, consisting of today's US$10,000,000 initial drawdown, and an earlier deposit of US$5,000,000.
Besra's Executive Chair, Dato' Lim Khong Soon, said, "Coming on the second anniversary of Besra's listing, the transfer of the first US$10,000,000 underscores the progress Besra has made since listing and sets the Company up well for its move back into commercial production, unlocking the undoubted potential of our exciting Bau project."
In accordance with the GPA, Besra is entitled to deploy the proceeds of the Facility for a variety of uses, including exploration, mine development purposes, working capital and feasibility studies. Commissioning the pilot plant and updating the 2012 Jugan Feasibility Study leading to commercial development, are Besra's current primary objectives.
The Company reminds shareholders that the Facility is not debt, is interest free and is expected to remove the need for dilutive equity financing and project/corporate debt that would otherwise encumber Besra with hedging requirements and/or onerous covenants.
This announcement was authorised for release by Dato' Lim Khong Soon, Executive Chair of Besra Gold Inc.
Michael Higginson
Company Secretary
Besra Gold Inc.
North America
James Hamilton
Investor Relations
Besra Gold Inc.
M: +1-416-471-4494
E: jim@besra.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/183706