Besra is in receipt of a signed subscription agreement from Victory Corporation Group (VCG). The subscription agreement provides for the purchase by VCG, or one or more of its affiliates, of 250 million common shares in Besra Gold for aggregate gross proceeds of US$14.25 million.
The investment will result in VCG receiving a 40% stake in the common shares of the company, making VCG the largest shareholder of Besra’s common shares. VCG is a consortium of companies representing interests including oil and oil production, shipping, hotels and leisure, aviation, retailing and commodity trading. VCG will also have the right to appoint two individuals to the Besra Board, subject to corporate law requirements and to approval by the Toronto Stock Exchange of the VCG nominees.
Closing is scheduled for July 31, subject to board approvals and any necessary regulatory approvals, including that of the Toronto Stock Exchange (TSX). Besra will be seeking to rely on the financial hardship exemption from the shareholder approval requirement under the TSX Company Manual. The Besra Board of Directors is meeting no later than July 15 to approve the agreement.
In connection with the investment, the company will pay to OrbitPlan International a cash finder’s fee equal to US$285,000 and will issue to OrbitPlan and George Molyviatis an aggregate 5 million common shares.
After giving effect to the finder’s fee, the net proceeds to Besra will be US$13.965 million. Besra intends to use the net proceeds to repay outstanding interest under its convertible and gold-linked notes, effect the capital investment necessary to restore production at its two Vietnamese mines to normalized levels and for general corporate and working capital purposes.
Besra is a diversified gold mining company focused on the exploration, development and mining of mineral properties in South East Asia. The company has four key properties - the Bau Goldfield in East Malaysia, Bong Mieu and Phuoc Son in Central Vietnam, and Capcapo in the Philippines. Besra expects to expand existing gold capacity in Vietnam over the next two years and is projecting new production capacity from the Bau project during 2016. www.besra.com