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 Besra’s Phuoc Son project 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.
Besra’s CEO John Seton says, “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,” says John Seton.
The announcement comes on the eve of the first visit to New Zealand by Vietnam’s Prime Minister Nguyen Tan Dung on the occasion of the 40th anniversary of diplomatic ties between the two countries.
Besra is also in the final stages of closing a long-awaited corporate financing which will set the company on a path to recovery, progress development of its world-class Central Bau project in East Malaysia and enable the migration of Besra’s incorporation to New Zealand, as previously approved by shareholders.