The S&P/ASX 200 Materials Index (ASX: XMJ) is leaping 1.02% today, but this ASX gold share is rocketing far higher.
The Besra Gold Inc (ASX: BEZ) share price soared 150% this morning to 10 cents after emerging from a trading halt before pulling back some of the gains. Besra shares are now up 62.5%.
Let's take a look at what is going on with this mining share.
What's going on?
Besra is exploring the Bau Gold Project in the Bau Goldfield in Sarawak, East Malaysia.
Today, Besra advised it has secured a US$300 non-binding drawdown funding facility with major shareholder Quantum Metal Recovery Inc. Quantum is a major gold distributor in Malaysia.
Besra described this as "one of the largest deals of its kind signed by an ASX listed junior".
The funding will completely fund production at the company's Bau Gold project.
Commenting on the news, Besra chairman Jocelyn Bennett said:
This funding would completely alter Besra's trajectory and provides a clear pathway to gold production at the Bau Project.
At a time when access to capital for emerging gold producers is difficult and typically highly dilutive, the Board is very pleased to have removed this impediment to Besra's growth.
We now have a clear line of sight on commencing production at Bau, with our issued capital intact, as well as recourse to little, if any, debt and the restrictive covenants typically required by lenders.
Besra is planning to update its 2013 feasibility study and expedite plans for production in the 2023 calendar year.
Besra share price snapshot
Besra Gold shares have descended 8% in the last year. In the past month, the gold explorer's share price has lifted nearly 48%.
This ASX gold share has a market capitalisation of about $23 million based on the current share price.
