Besra Gold Inc, a gold mining company based in Perth, Western Australia, has received a $10 million investment from Quantum Metal Recovery Inc. The investment is part of a $300 million Gold Purchase Agreement (GPA) between the two companies, which was announced earlier this year.
Under the terms of the GPA, Besra has agreed to sell a quantity of refined gold from its Bau Gold Project to Quantum. The agreement will remain in effect until either 3,000,000 ounces of refined gold have been delivered to Quantum or aggregate deposits totaling $300 million have been received by Besra from Quantum.
With this latest investment, Besra has now received a total of $15 million from Quantum, including an earlier deposit of $5 million. The funds will be used for various purposes, including exploration, mine development, working capital, and feasibility studies.
Besra’s Executive Chair, Dato’ Lim Khong Soon, expressed his satisfaction with the investment, stating that it demonstrates the progress the company has made since its listing and sets them up for commercial production. The funds will be used to commission a pilot plant and update the feasibility study for the Bau project, which will pave the way for further commercial development.
It is important to note that the Facility provided by Quantum is not debt and is interest-free. It is expected to eliminate the need for dilutive equity financing and onerous debt that would otherwise encumber Besra with hedging requirements and burdensome covenants.
Besra Gold Inc reminds shareholders that the Facility will be put to good use and aims to unlock the potential of the Bau project. By leveraging these funds, the company can continue its exploration activities and move closer to realizing the full potential of its mining projects.
This latest investment marks an important milestone for Besra Gold Inc and positions the company for future success. By securing funding through the Gold Purchase Agreement, Besra can continue its operations without the need for additional financing or debt, providing a solid foundation for its growth and development in the mining industry.
As Besra Gold Inc progresses with the Bau Gold Project and other mining activities, shareholders can look forward to the company’s continued success and the unlocking of the wealth of resources that lie within its projects. With the support of Quantum Metal Recovery Inc, Besra is well-positioned for commercial production and the realization of its exciting gold projects.
