Besra settles $4.1m in gold notes
TORONTO (miningweekly.com) – TSX- and ASX-listed Besra on Tuesday said it has delivered 3 438 oz of gold under its gold loan notes, settling a face value of about $4.1-million.
The gold loan notes, which matured at the end of May, bore a coupon rate of 8%, and were secured by certain company assets.
About 26% of the note holders of the outstanding principal amount of original gold loan notes had converted to the 8% gold-linked notes, which would mature two years later on May 6, 2015.
Besra CEO John Seton said the gold loan was an “innovative” financing for some of the capital costs required to develop the Phuoc Son property, in Vietnam, while avoiding a potentially large equity dilution. “With paying off the outstanding gold loan, we have simplified our debt and strengthened our balance sheet going forward."
Besra is focused on four advanced properties, including the Bau goldfield in East Malaysia; Bong Mieu and Phuoc Son in central Vietnam; and Capcapo in the Philippines.
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