Besra Gold (ASX:BEZ) launches placement with majority shareholder – The Market Herald

Subscribe

Be the first with news that moves the market

  • Besra Gold (BEZ) gets a $1 million boost from a deal with major shareholder Quantum Metal Recovery
  • Quantum underwrites around 11.1 million CDIs at handsome cents each, marking a substantial premium to Besra’s closing price of 3.2 cents on October 7.
  • Besra Gold says it is excited by the enthusiasm Quantum has shown to support its exploration and development plans for the Bau gold project in Malaysia
  • BEZ shares soared 61.3% to close at 5 cents

Besra Gold (BEZ) has signed a subscription agreement with a major shareholder to raise $1 million for its Bau gold project in Malaysia.

Quantum Metal Recovery has agreed to underwrite approximately 11.1 million new chess deposit interest (CDI) at nine cents each. This represents a significant premium to the closing price of 3.2 cents per CDI on October 7.

US-based Quantum Metal Recovery acquired a 9.72% stake in the company in August.

“Quantum has shown with this placement a clear commitment to supporting our exploration and development strategies at Bau and we welcome their increased investment in Besra,” said Besra CEO Dr. Ray Shaw.

“I am very pleased with the enthusiasm Quantum has shown for Bau and look forward to developing our relationship further.”

The Bau Gold Project has a JORC Mineral Resource estimate of 72.6 million tonnes at 1.4 grams per tonne (g/t) gold for 3.3 million ounces. It also has an exploration target of between 4.9 and 9.3 million ounces of gold.

Besra said the companies were also discussing potential additional financial support, but there were no guarantees.

BEZ shares climbed 61.3% to close at 5 cents.

Comments are closed.