On 3 January 2018, Bassari Resources Limited (ASX: BSR) announced that it has finalized the loan document and is also signed. BSR will be receiving a loan worth US$12.2 million from the Coris Bank International Ltd, Senegal branch (Coris).Â All the documents related to loan signed between Coris Bank and the subsidiary company of Bassari, Makabingui Gold Operation SA (MGO) where the credit is given at an interest of 9% per annum. Against the loan, Bassari itself will act as a guarantor and assets of the Makabingui Gold Project will we kept as a security against the loan amount.Â
The purpose of the loan is supporting the capital expenditure of its project. Also, the initial drawdown from the loan amount is already made to help the project facility. Further draw-down will be during the order of crucial mining production facility equipment which includes crushers and ball mills t for the initial development of the project.
The official listing date of Bassari Resources Limited on ASX is 7 January 2008. The performance of the company since getting listed on ASX remains positive. However, the YTD performance of the company remains negative as the company has made losses in the FY2018. In the past five years, the performance of the company is 200%. The previous one-year performance of the company is 20%.
For the half-yearly period ending on 30 June 2018, the company made a net loss of $0.807 million. The balance sheet of the company highlights the presence of a strong net asset base of $56.159 million which is good regarding meeting long-term obligations. However, the company is facing challenges in meeting the working capital requirements and clearing short-term obligations as the current liabilities worth $2.529 million which the company owns is much above its total current asset of $1.315 million. FY2018 reports an increase in accumulated losses which indicates the weak operating performance of the company. It can somewhere impact the sentiment of the investors and the shareholders of the company. The total shareholderâs equity is worth $56.159 million.
By the end of the FY2018, the net cash and cash equivalent were $1.238 million. Although the company was not able to perform well this year, its past performance and assets which it owns helped in receiving the loan from the Coris Bank which means that the bank feels safe and has confidence while providing credit to the company. It also creates a positive influence on the shareholders as well as the investors who are interested in purchasing the shares of the company as per its previous track of good performance.
By the end of the trading on 3 January 2019, the market price of the share increased by 16.667%. The closing price of the share was A$0.021 which is 0.003 points above its previous trading dayâs closing price with the stock holding a market capitalization of A$41.17 million.
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