Besra Gold advises that a revised Proposal to Creditors will be considered by a meeting on April 7, 2016, to be called by the appointed Proposal Trustee, MNP Limited.
The adjournment was approved following several amendments to the terms of the proposal made at the request of Euro Pacific Capital which now needs to update its clients.
Euro Pacific Capital has advised that it intends to support the amended proposal. The adjournment was granted with the support of the Proposal Trustee, Euro Pacific Capital, Concept Capital Ltd and Besra.
The amended proposal has been filed by the Trustee with the court, and will be distributed to creditors to comply with the requisite notice period for the next meeting.
In late January Besra advised that a proposal had been submitted for consideration by its creditors, in accordance with the Notice of Intention to Make a Proposal (NOI) filed by Besra on October 19, 2015. The proposal was filed in Toronto, Canada, Besra’s jurisdiction of incorporation.
Besra stated at the time that the lodgement of the proposal marked a significant step in progress towards resolving a major impediment to the company obtaining funding and returning to normal operations.
“The proposal, if accepted by the requisite majority of creditors and approved by the Ontario Superior Court of Justice, will provide potential new investors with certainty of Besra’s financial position. Upon the issuance of a court order approving the proposal (approval order), Besra will make an application to the Ontario Securities Commission to lift or vary the existing cease trade order and complete the exit financing contemplated by the Proposal, which provides that such financing must be completed within six months of the date of the approval order,” the company stated.
“Besra will work intensively with its potential exit financiers to complete the funding as quickly as is practically possible to facilitate a return to normal operations and re-commence investment in the Bau property in East Malaysia.
“Operations at the company’s Bong Mieu site in Vietnam are still on minimal production while the ongoing licensing situation there remains uncertain, and Phuoc Son is preparing to draw down on local loan funds in preparation for a return to production there in the next six months.
“Incremental progress is being made in Vietnam, however the company’s efforts to return to full scale production are still being hampered by drawn out negotiations with local bureaucracy and generally unfavourable and unstable conditions for foreign investors in the resources sector, including a recent 2% increase in the headline gold royalty amount. Negotiations with local tax authorities continue with respect to a restatement of Bong Mieu and Phuoc Son’s tax and royalty situation and Besra’s local partners are actively involved in resolving these matters.
“The company will return its focus to the Bau property in East Malaysia once the proposed financing is concluded. Planning is under way for a 3-year exploration program targeting progressive increases in the existing 3.3 million ounce resource to 4.5 million ounces and beyond. Further test work will be undertaken in concert with resource increase to optimise production scenarios for Bau.
“Following the restructure and refinancing, Besra will also look at relisting on an appropriate trading platform - the TSX, ASX or an Asian bourse,” the company stated.