PERTH (miningweekly.com) – Gold developer Besra Gold is on the hunt for a new CEO, with the company also giving power to a $300-million gold pre-purchase and offtake funding deal struck with shareholder Quantum Metal Recovery in March.

Besra said on Tuesday that the company had now signed a binding gold purchase agreement with Quantum, with the $300-million in funding to be paid over 30 months against future production ounces. The funding would enable the company to fully fund production at its Bau gold project, in Malaysia, as well as to fund the appraisal of other deposits within the Bau goldfield corridor.

Under the gold purchase agreement, Quantum will receive three-million ounces of refined gold, or aggregate deposits in an amount equivalent to $300-million.

Besra on Tuesday confirmed the receipt of the first $2-million instalment of the $5-million initial deposit, with the balance to be remitted no later than three business days after the conditions precedent had been satisfied.

“The announcement of progress on this landmark agreement, as well as the accompanying corporate changes, moves Besra’s three-million-ounce Bau gold project closer to production. In particular, this extraordinary funding deal should provide ample funding for the development of Bau and allows us to bring the project into production in a way that is uniquely non-dilutive to our shareholders and to retain exposure to gold price movements, free of hedging or other onerous covenants,” said Besra executive chairperson Jocelyn Bennett.

“Whilst we have several conditions precedent yet to fulfil we expect the $300-million facility to be fully operational by June 30.”

The transaction is conditional upon the completion of security documentation, shareholder approval, and Australian and Canadian regulatory approvals.

Meanwhile, with Bau moving towards development, CEO Dr Ray Shaw has agreed to move into the role of COO to focus on in-country development and exploration activities, with a recruitment process having started to appoint a replacement CEO.