Photo by: Bloomberg
PERTH (miningweekly.com) – The note holders of dual-listed gold miner Besra have issued a notice to cure after the miner defaulted on a near C$7-million payment.
Besra has been given 30 days to cure the default, and noted that if it was unable to raise the necessary funds within that timeframe, or to negotiate an extension with the holders of its 9% unsecured convertible redeemable notes, the company would be forced to consider a restructuring.
Besra said that in order to fund priority operational expenses while the company pursued its financing initiatives, the company had issued three-month secured promissory notes, in an aggregate amount of $150 000, to three lenders who previously accepted promissory notes aggregating $300 000.
One of these note holders was a director of the company.
The lending group would now be issued with 1.5-million warrants to acquire common shares, at a price of 5c each, expiring one year from the date of issue.
ASX- and TSX-listed Besra had previously downgraded its gold production expectations for the 2014 financial year to between 40 000 oz and 45 000 oz, after missing its second-quarter production targets.
Production at the Phuoc Son plant, in Vietnam, was averaging around 70 oz/d after an extended period of limited production owing to severe weather conditions and a disputed export tax assessment, which would be finalised in the next few days.
Production at the Bong Mieu mine was still suspended following a series of severe weather incidents late last year, and an insurance claim of more than $4-million had been lodged for typhoon damage and the resultant loss of income.