Reverse Mergers & Low Float Plays

[Potse]

QMEI...$650K private placement in Besra Gold......

The acquisition of the position in Besra Gold actually turned out to be much less expensive than I had thought. According to the Supplemental filing that QMEI made on 9/28, the $5M price tag on that position was in Australian dollars. Which works out to be only a little more than $3.25M US dollars. Also nice to see that they got a 3-month option to pick up an additional 20M shares if they want to.......

According to the Besra Gold press release today, QMEI has invested $650K into Besra via a private placement. Based on the language in this press release, QMEI will likely become further involved in the financing of Besra (either directly or indirectly).......

Perth, Western Australia, 10 October 2022 - Besra Gold Inc (ASX: BEZ) (Besra or the Company).

Besra is pleased to announce that it has signed a Subscription Agreement with Quantum Metal Recovery Inc. (Quantum), a substantial shareholder of the Company, for the issue of 11,111,111 new CDIs to raise A$1,000,000.

The CDIs will be issued pursuant to the Company’s existing capacity under ASX Listing Rule 7.1 at an issue price of A$0.09 per CDI and will rank equally with existing fully paid CDIs on issue. This compares with a closing price of A$0.032 per CDI on 7 October 2022, the last day of trading.

Proceeds from the placement will be used to fund activities at the Bau Gold Project and general working capital.

The Placement was negotiated with the assistance of Noblemen Ventures Limited, a Sydney based investment and corporate advisory group. Besra is also in advanced discussions with Quantum concerning broader funding support of Besra’s activities though there is no assurance that such discussions will result in binding agreements.

This placement follows Quantum having acquired a substantial shareholder interest in Besra, as announced to the ASX on August 24, 2022. Quantum is a US-based corporation and part of a group whose principals are based in Malaysia, with strong relationships to Sarawak stakeholders including within the district of Bau.

Besra’s CEO, Dr Ray Shaw commented:

“Quantum has with this Placement shown a clear commitment to support our exploration and development strategies at Bau and we welcome their increased investment in Besra. The Bau Gold Project has a Resource estimate of 72.6Mt @ 1.4 g/t for 3.3Moz1 (JORC 2012) of gold, involving a number of discrete deposits as well as an Exploration Target ranging between 4.9Moz and 9.32Moz2 (on a 100% basis). I am very excited with the enthusiasm Quantum has shown for Bau and I look forward to further developing our relationship.”

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02579783-6A1114488?access_token=83ff96335c2d45a094df02a206a39ff4