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PERTH (miningweekly.com) – Gold developer Besra Gold on Wednesday announced that all of the conditions precedent to a $300-million gold purchase agreement with shareholder Quantum Metal Recovery, had now been satisfied.
The company earlier unveiled the funding deal under which $300-million would be paid over 30 months against future production ounces, and would enable the Besra to fully fund production at its Bau gold project, in Malaysia, as well as to fund the appraisal of other deposits within the Bau goldfield corridor.
The facility is expected to remove the need for dilutive equity financing or project debt and covers up to three-million ounces of gold offtake. Subject to drawdowns under the facility occurring, the funding will be available at a rate of up to $10-million a month with an initial $2-million immediately available on the execution of a term sheet, and a further $3-million on the execution of the facility agreement.
Deliveries to Quantum are to be made from all gold produced up to 25 000 oz, 80% of all gold produced from 25 001 oz to 120 000 oz and thereafter 65% of all gold produced, leaving 35% of gold production unassigned.
Besra on Wednesday said that $10-million is being deposited into the company’s drawdown accounts, and was expected no later than the first week of October.