Besra amends Molyviatis financing terms
PERTH (miningweekly.com) – Gold miner Besra on Wednesday amended an investment agreement with private investor George Molyviatis, who was investing some C$15-million into the company.
The initial agreement would have seen Molyviatis invest C$10-million in a first tranche transaction, in exchanged for a secured convertible note, converting upon maturity at 5c a share, for a maximum of 200-million common shares.
The second uncommitted tranche, which would have been issued at Molyviatis’ discretion, would consist of C$5-million in exchange for a convertible note on the same terms. Molyviatis would also receive one warrant for each three shares issued under this note, and would receive more than 33.33-million warrants if exercised.
Molyviatis would also receive more than 66.66-million common share purchase warrants, each exercisable at 10c.
However, amendments made to the transaction would now see Molyviatis invest the C$15-million in three tranches, instead of two, and the investor receiving 100-million three-year common stock purchase warrants, at 10c each.
The revised agreement also provided for a break fee of 10% of the transaction value.
Besra was hoping to use the funds raised to fund its TSX listing compliance by completing its financial statements for the year ended June.
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