BESRA GOLD INC 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 CAD2 million is the first tranche of two in a CAD15 million financing by way of:
- 6% secured mandatory converting notes ("Equity Notes") maturing in 2 years, converting at CAD0.02 per share into a maximum of 750,000,000 shares of Besra common stock; and
- 300,000,000 three-year common stock purchase warrants for the purchase of Common Shares at CAD0.04 each.
InCoR is entitled to nominate one person to the Board of Directors of Besra with the close of Tranche 1, and that person will be Mr Molyviatis.
Besra CEO John Seton, "Whilst 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 CAD13 million by the end of the month.
"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 recapitalisation of Phuoc Son with a new local partner and resume normalised production from both mines in Vietnam over the coming months."
Funds from the first tranche will be allocated to creditors and urgent operational requirements. Note holders who have overdue payments owing will be addressed from the closing of the second tranche and a second capital raising anticipated shortly thereafter once filing defaults have been remedied.
"While we still have some significant challenges, this is step in the right direction. I'd like to thank shareholders and creditors for their patience and executives and staff, both existing and immediate past, for their perseverance under very trying circumstances," said Seton.
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