Show Me the Money! Besra Gold & Black Rock Mining are seeing it this morning

Nick Sundich Nick Sundich, October 11, 2023

ASX resources stocks Besra Gold (ASX:BEZ) and Black Rock Mining (ASX:BKT) were winners this morning after investors liked the news that sweet cash dollars were coming their way.

 

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Besra Gold gets a US$10m injection (with more to come)

Besra Gold has the Bau Gold Project in Malaysia. The project hosts a combined JORC Resource of 72.6Mt at 1.43g/t gold for 3.3m ounces of gold. It also has an exploration target ranging between 4.9 and 9.3Moz.

One of its largest shareholders is Quantum Metal Recovery and it has a funding agreement with them. The deal provided for an initial US$3m up front once the facility agreement was executed and US$10m per month thereafter, up to the point where either US$300m has been drawn down or 3Moz of refined gold was received by Quantum.

This morning, Besra Gold told investors it received the initial US$10m payment. This takes the total to US$15m accounting for an earlier deposit. It comes right on the second anniversary of its ASX listing and does not attract interest. So it goes without saying the company is well positioned and won’t be diluting shareholders anytime soon!

 

Black Rock Mining will get sweet cash soon

We’ve written about this company before and while there’s no doubt it has a great graphite deposit in Tanzania, it has taken longer to get financing than investors anticipated for several reasons (one arguably being perceived sovereign risk).

This morning it told shareholders that it had short-listed debt providers and they were providing term sheets to their internal credit committees. One of them had given initial approval – an unnamed subsidiary of the South African Government.

The company said initial approval was not material, but a good sign that final approval was on track. It told shareholders to expect approvals before the end of this calendar year and it would subsequently negotiate binding deals.

Unlike Besra, this one will likely be seeing some dilution with the company targeting no more than 50% debt. First production is targeted in 2025.

 

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