Besra Gold nearly doubles on $1m subscription agreement with Quantum Metal Recovery
Funds will be used to fast-track exploration activities at the Bau Gold Project in Malaysia, where recent drilling identified two deep gold mineralised targets.
US-based Quantum, a substantial shareholder of Besra Gold (ASX:BEZ), has been issued 11.11m CDIs at an issue price of $0.09, which will rank equally with existing fully paid CDIs on issue.
This compares with a closing price of $0.032 per CDI on October 7, the last day of trading, and shows strong support for the placement – which is at a premium of nearly three times the last traded price.
While the placement was negotiated with Sydney-based investment and corporate advisory group Nobleman Ventures, BEZ says it is in advanced discussions with Quantum concerning broader funding support of activities.
The BEZ share price jumped as much as 90% to 0.059c following the news release to the ASX this morning.
“With this placement, Quantum has shown a clear commitment to support our exploration and development strategies at Bau,” BEZ CEO Dr Ray Shaw says.
“We welcome their increased investment in Besra – I am very excited with the enthusiasm Quantum has shown for Bau and I look forward to further developing our relationship.”
The Bau Gold Project has a resource estimate of 72.6Mt at 1.4g/t for 3.3Moz of gold, involving several discrete deposits as well as an exploration target ranging between 4.9Moz and 9.32Moz.
Initial drilling for 2022 has wrapped up and although assay results are still pending, visual inspection and logging of all cores has been encouraging.
The first of the two new targets at Bekajang is a 50-100m wide by 750m long corridor with potential for multiple intervals of polymetallic mineralisation.
It underlies the traditional near-surface gold mineralisation target and is associated with mild to strong hydrothermal alteration.
Visual sulphides that are typically associated with gold, silver and base metal mineralisation along this trend at this level were also observed in all cores.
The other is an area of intersecting structural trends potentially facilitating deep weathering in a setting analogous to that of the nearby former Bukit Young and Tai Parit pits where non-refractory gold was mined down to depths of 80m.
This article was developed in collaboration with Besra Gold (ASX:BEZ), a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.