Besra Gold Inc (ASX:BEZ) signs US$300m binding agreement, CEO steps down

• Besra Gold Inc’s (BEZ) binding gold purchase agreement with major shareholder Quantum Metal Recovery Inc becomes legally binding
• The US$300 million (A$448 million) deal enables Besra to fully fund production at its three-million-ounce Bau project in Malaysia
• Besra has already pocketed the first US$2 million instalment of the US$5 million initial deposit, and is targeting full operational status by 30 June 2023
• With Bau transitioning to a development phase, CEO Dr Ray Shaw will step down into the role of Chief Operating Officer to focus on in-country development and exploration activities
• Besra Gold soars 34.1 per cent, trading at 29.5 cents at 11:14 am AEST.

Besra Gold Inc’s (BEZ) shares have surged after the Australian gold miner signed a legally binding gold purchase agreement worth $300 million (A$448 million) with major shareholder Quantum Metal Recovery Inc.

The deal will enable Besra to fully fund production at its three-million-ounce Bau project in Malaysia’s east.  

Through this agreement, Besra will have access to up to $10 million per month to use for the construction, commissioning, and operation of the Bau site and associated infrastructure.

The facility will be paid over 30 months against future gold ounces, which is expected to remove the need for dilutive equity financing, project and corporate debt and hedging requirements.

The agreement is expected to be one of the largest deals of its kind signed by an ASX listed junior.

Besra has already pocketed the first US$2 million instalment of the US$5 million initial deposit, and is targeting full operational status by 30 June 2023.

“…this extraordinary funding deal should provide ample funding for the development of Bau and allows us to bring the project into production in a way that is uniquely non-dilutive to our shareholders and to retain exposure to gold price movements, free of hedging or other onerous covenants,” Executive Chair Jocelyn Bennet said.

With Bau transitioning to a development phase, CEO Dr Ray Shaw has agreed to step down into the role of Chief Operating Officer to focus on in-country development and exploration activities.

Acacia Executive Search has been appointed to recruit a replacement CEO for the company.

Besra Gold soared 34.1 per cent, trading at 29.5 cents at 11:14 am AEST.