Besra Gold eyes ASX, seeks to raise AU$12.5 million via IPO

Summary

  • Besra Gold is an Australian gold miner having total resources exceeding three million ounces of gold at the Bau Project.
  • The company is looking to raise between AU$10 million and AU$12.5 million from the secondary market.
  • Besra Gold is already a Canadian incorporated company having its listing on the TSX, therefore, in Australia, its CDIs will be issued and traded on the ASX.

The Australian financial market is currently flooded with a host of new listings. A new name that is about to join the Australian listed space is Besra Gold Inc (ASX:BEZ). Besra Gold is an Australian gold miner, which operates the Bau Project, located in Sarawak, East Malaysia. The project boasts more than three million ounces of gold in total resources, thus placing the company in the top quartile of small explorers.

The company’s interest in the Bau Project dates back to 2006 and since then it has expended a sizeable amount of over AU$62 million (US$40 million) on the exploration activities.

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The Bau gold project covers a vast area of 8 km x 15 km, having a heavily gold-endowed fairway, with six major deposits apart from more than 20 additional prospects. The Bau project also hosts a potentially large-scale, world-class and  advanced shallow gold asset: including a JORC 2012 Resource of 72.4Mt @ 1.43 gram per tonne gold for 3.3Moz. In addition, the project also incorporates an exploration target of a further 87 – 112Mt @ 1.72–2.55g/t Gold for 4.9 – 9.3Moz.

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CDIs over equity shares

Besra Gold Inc. is seeking to get listed on the Australian Securities Exchange (ASX) via IPO. The company is looking to raise between AU$10 million and AU$12.5 million from the secondary market, via the issue of 50,000,000 to 62,500,000 Chess Depository Interests (CDIs) at AU$0.20 per CDI. Each CDI will be equivalent to one common share in Besra Gold.

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As of July 2021, the company had already secured a funding of AU$10.5 million on firm commitments from investors. Besra Gold has appointed Canaccord Genuity as the lead manager to float this IPO.

Besra Gold is already a Canadian incorporated company having its listing on the Toronto Stock Exchange (TSX), therefore, in Australia, its CDIs will be issued and traded on the ASX under the code BEZ. The listing date of Besra Gold’s CDIs is yet to be announced.

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What are CDIs?

CDIs are financial instruments that allow investors to get all the economic benefits of a financial product of another country and Australian Government Bonds without being entitled to the legal holder of those financial products. To put it simply, it is a type of Depository Receipt developed by the ASX, however these are different from ADRs and GDRs (American Depository Receipts and Global Depository receipts).  

Read More: Renergen Limited Announces Successful placement of 5,600,000 CDIs

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