- Besra Gold (ASX:BEZ) receives US$10 million from Quantum in accordance with US$300 million GPA announced to the ASX on May 9 this year
- The GPA was approved by shareholders on July 25
- This arrangement continues until either Quantum receives three million ounces of refined gold, or the aggregate deposits reach an amount equivalent to US$300 million
- BEZ shares were up 22.2 per cent, trading at 16.5 cents at 1:02 pm AEDT
Besra Gold (ASX:BEZ) has received US$10 million (A$15.5 million) from Quantum, in accordance with the terms and conditions of the $300 million gold purchase agreement (GPA) established on May 9 this year.
Under the terms of the GPA, which shareholders approved on July 25, Besra has committed to selling a quantity of refined gold from the Bau Gold project or any other gold project owned by the company or its subsidiaries.
This arrangement will continue until either Quantum has received three million ounces of refined gold or the aggregate deposits reach an amount equivalent to $300 million.
As part of the facility outlined in the agreement, Besra has now received a total of $15 million from Quantum. This sum includes today’s drawdown of $10 million and a prior deposit of US$5 million.
“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,” BEZ Executive Chair Dato’ Lim Khong Soon said.
As per the terms of the GPA, Besra has the flexibility to utilise the proceeds from the facility for a variety of purposes, including exploration, mine development, working capital, and conducting feasibility studies.
Currently, Besra’s main priorities involve commissioning the pilot plant and revising the 2012 Jugan feasibility study with the aim of moving towards commercial development.
The company emphasised to shareholders that the facility does not constitute a form of debt and doesn’t accrue interest.
BEZ shares were up 22.2 per cent, trading at 16.5 cents at 1:02 pm AEDT.