2 ASX gold shares going gangbusters on Wednesday

The ASX gold stocks are bucking the wider market sell-off today to leap higher.

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Two ASX gold shares are setting the bar high today.

The All Ordinaries Index (ASX: XAO) is down 0.4% at time of writing.

And the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is doing it even tougher, down 0.8% with the gold price edging lower overnight to US$1,929.57 per ounce.

But these two gold stocks are up 14.3% and 22.2% respectively.

Here's why they're going gangbusters today.

What's lifting this ASX gold share?

The first miner having a stellar run today is Besra Gold Inc (ASX: BEZ).

Shares in the gold miner are trading for 16 cents apiece, up 14.3% from yesterday's closing price of 14 cents.

Investors are bidding up the ASX gold share after the company reported that all conditions precedent to the binding US$300 million Gold Purchase Agreement (GPA) with Quantum Metal Recovery Limited have been satisfied.

Quantum is Besra Gold's major CHESS Depositary Interest (CDI) holder.

Under the agreement, Besra will sell Quantum three million ounces of refined gold from its Bau Gold Project (or any other gold project it may own), or until Besra receives aggregate deposits equivalent to US$300 million from Quantum.

Quantum has paid an initial deposit of US$5 million and will deposit up to $US10 million of working capital per month into Besra's drawdown account.

The ASX gold share said it can use the capital for exploration, feasibility studies, mine development purposes and working capital.

Investor enthusiasm may be stoked by the company's reminder that the funding:

[I]s not debt, is interest free and is expected to remove the need for dilutive equity financing and project/corporate debt that would encumber Besra with hedging requirements and/or onerous covenants.

Which brings us to…

Gold miner embracing lithium

OzAurum Resources Ltd (ASX: OZM) is a traditional ASX gold share that's quite recently been turning its attention to lithium.

The OzAurum share price is up 22.2% today, at 11 cents per share.

That sees the OzAurum share price up an eye-watering 266.7% since the closing bell on 14 September.

Yep, that's less than four trading days.

Investor exuberance went into top gear on Friday after the company reported on its potential acquisition of the Linopolis Jaime hard rock lithium project, located in Brazil.

Today, the ASX gold share is soaring again after announcing it has received firm commitments to raise $2.4 million, before costs in a capital raising.

The cap raise is being conducted via a share placement to professional and sophisticated investors at a price of 7.5 cents per share.

While that represents a 32% discount to the current OzAurum share price, this isn't dampening investor enthusiasm for the stock today.

The miner said it will use the fund to commence exploration at its new Linopolis Jaime Lithium Project, including diamond drilling and geological mapping.

OzAurum isn't forgetting about gold, though. The company also said it will employ some of the new funds to progress the scoping study at its Mulgabbie North gold project, in Western Australia.

Commenting on the cap raise sending the ASX gold share soaring today, CEO Andrew Pumphrey said:

This raising ensures that OzAurum can move quickly to commence exploration of its new lithium projects in Brazil along with furthering the exploration at our WA gold projects.

The Linopolis Jaime Lithium Project with a 7 plus metre wide spodumene zone with an average grade of spodumene crystals of 6.94% LiO2 offers an immediate drill target and potential for a new lithium discovery. Significant upside also exists with over 20 LCT pegmatites identified within the project area to date.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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