Mining News
Australian gold junior Besra secures up to US$300M to build a mine in Malaysia
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(Kitco News) - Besra Gold (ASX: BEZ) today announced the execution of a non-binding term sheet for the provision of up to US$300M gold pre-purchase drawdown and offtake funding agreement signed with its major shareholder Quantum Metal Recovery, one of the largest gold distributors in Malaysia.
Besra said it believes that upon completion, this agreement will be one of the largest deals of its kind signed by an ASX listed junior.
According to a company press release, post-completion, the facility provides up to a US$300M deposit, to be paid over 30 months against future production ounces, enabling Besra to fully fund production at the Bau gold project in Malaysia and the appraisal of other deposits within the Bau goldfield corridor.
Subject to draw-down under the facility, Besra will be funded to immediately commence an update of the previous feasibility studies with initial results of this work due in the 2H CY23.
Upon implementation of a pilot plant and further successful updates to the feasibility studies, Besra plans to utilize the funds raised to commence commercial-scale production within 12-18 months.
Chairwoman Jocelyn Bennett commented, "This funding would completely alter Besra's trajectory and provides a clear pathway to gold production at the Bau project. At a time when access to capital for emerging gold producers is difficult and typically highly dilutive, the Board is very pleased to have removed this impediment to Besra's growth.
"We now have a clear line of sight on commencing production at Bau, with our issued capital intact, as well as recourse to little, if any, debt and the restrictive covenants typically required by lenders.”
Besra is a gold mining and exploration company focused on the exploration and development of the 3M ounce (JORC) Bau Goldfield in East Malaysia. In addition to mineral resources, the project has a global exploration target of between 4.89 and 9.27M ounces of gold @ 1.7–2.5 g/t Au.
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