Besra Gold has made the final delivery of 3438 gold ounces under its gold loan notes arrangement, settling a face value of about US$4.1 million. The notes were secured be certain assets of the company and matured on May 31 at an annual interest rate of 8%.
Besra’s CEO John Seton says the loan was “innovative financing” for some of the capital costs for development of the company’s Phuoc Son project in Central Vietnam. By avoiding “a potentially large equity dilution,” he adds, “we have simplified our debt and strengthened our balance sheet.”
Besra is a diversified gold miner with two producing properties in Vietnam, Bong Mieu and Phuoc Son and advanced properties in East Malaysia and the Philippines. Besra officials have announced likely capacity expansions in Vietnam through 2015, while projecting accelerated capacity at their Bau Central site in Malaysia during late 2015, depending on the result of the Jugan feasibility study, which is scheduled for completion in 2013.