BESRA hopes that its long awaited refinancing and restructuring will be approved by the Ontario Securities Commission in Canada enabling it to refocus efforts on the large Bau Goldfield exploration project in East Malaysia. The company has made application to the commission to partially revoke the Cease Trade Order (CTO) of December 29, 2014 and amended on March 4, 2015.
The refinancing and restructuring can be completed once the application is approved.
Although the company has operating gold projects in Vietnam, the company believes the Bau project will prove to be a company maker
Besra holds a letter of financing for C$10-20 million from Molard Financial Management Services SA, a Swiss Fiduciary representing a pool of private clients, of which C$10 million is committed and the remainder is at the option of the investor. The company understands that the first tranche of $10 million will be released upon completion of documentation after the CTO is varied.
The new funds will help to meet creditor proposal arrangements and refocus efforts on Bau.
The financing will also enable Besra to complete the audits of the last two years’ financial statements and accordingly cure the filing deficiencies. This should enable the CTO to be lifted and a relisting to occur, subject to market conditions.
Following completion of the restructure and refinancing, Besra intends to make preparations for relisting on an appropriate trading platform - either the TSX, ASX or an Asian bourse.
This process could take up to six months and the specific conditions of the chosen bourse will also be a factor.
The Bau Goldfield is a world-class project with the potential to dramatically increase Besra’s gold production. Geologically similar to the Carlin Trend in Nevada, the property has multiple deposits and an established gold resource.
Bau is a brownfield project, spread over a large geographic area in which Besra is in a consortium with a Malaysian company with material Bumiputra interest that owns rights to mining tenements covering much of the historic goldfield. Besra holds a 85.61% controlling interest with an agreement to increase ownership to 93.55%.
Itinerant Chinese miners first began working the area in the 1800s and modern techniques made it production-worthy again with the rising price of gold in the 1970s. When the value of gold went the other direction in the 1990s, mining operations at Bau Goldfield ended.