Workers at a Besra gold mining property in Vietnam prior to a shift change.

BESRA has closed the first Can$2 million tranche of a Can$15 million financing with InCoR Holdings Plc, chaired by George Molyviatis. InCoR is a venture capital and holding company in the natural resource sector that acquires and develops projects and assets focusing primarily in the mineral resource, energy and food/agriculture sectors.

The Can$2 million is the first tranche of two in a $15 million financing by way of:
6% secured mandatory converting notes maturing in two years, converting at Can$0.02 per share into a maximum of 750 million shares of Besra; anD 300 million three-year common stock purchase warrants for the purchase of common shares at Can$0.04 each.

InCoR is entitled to nominate one person to Besra’s Board of Directors and that person will be George Molyviatis.

Besra’s CEO John Seton said: “While this has taken much longer than planned, we are very pleased to announce a major milestone in our dealings with Mr Molyviatis and InCoR. We will now also be able to focus on closing the second tranche of Can$13 million by the end of April.

“In Vietnam we have made significant progress in taxation and royalty matters, and following waiver of JV pre-emptive rights are preparing to close the recapitalization of Phuoc Son with a new local partner and resume normal production from both mines in Vietnam over the coming months.

“While we still have some significant challenges, this is step in the right direction,” said John Seton.

Besra has signed a Heads of Agreement which paves the way for one of Vietnam’s leading financial institutions to become a significant partner in Phuoc Son whilst injecting new capital. The agreement provides for a co-ordinated investment in Phuoc Son Gold Company (PSGC) that includes significant new capital and ownership restructuring.

John Seton said: “By teaming up with a reputable, strong and influential local partner, we will be able to recapitalize our Phuoc Son Joint Venture and be much better placed to bring it back into sustained full production.”

Confidentiality provisions in the Heads of Agreement restrict the release of full details of the co-signatories and the terms until pre-emptive rights under the PSGC Joint Venture Agreement have been waived or exercised.

“After a very tough few years, we are finally starting to have a few wins. We applaud the recent announcement by the Vietnamese government to reform the way that gold royalties are calculated which will provide a more globally competitive rate and be a direct benefit to our projects there.”

Besra is also migrating its incorporation to New Zealand, as approved by shareholders.

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