Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
BeMetals (TSXV: BMET; OTC: BMTLF), which made its name in the gold sector by acquiring a portfolio of exploration projects in Japan, has announced a $5 million loan from strategic investor B2Gold (TSX: BTO). The loan, which bears interest at 4.7% per annum, will be used for working capital.
“Given the current conditions in equity markets for the mining sector, we are pleased to have arranged this non-dilutive financing with our strategic and largest shareholder B2Gold. This capital will be added to the company’s current treasury of approximately C$3 million,” John Wilton, CEO of BeMetals, said in a news release.
“The funds will continue to be diligently deployed to create value for investors with ongoing drilling of our Kato project and exploration of our other gold properties in Japan,” added Wilton. The Kato gold project is BeMetals’ most advanced exploration project in Japan and covers close to 2,000 hectares in Hokkaido.
The property, fomerly known as Seta River, was drilled by Japan’s metals mining agency in the 1990s. During that time, intervals of high-grade gold including 17.5 metres grading 8.15 g/t and 18.65 metres grading 5.01 g/t were returned. Little work was conducted on the property since then.
On top of Kato, BeMetals has four other gold exploration projects in Japan that together form a land position covering extensions and similar geological terrains known to have hosted several high-grade mines. Examples include the currently operating Hishikari gold mine on Kyushu, which produced 7.9 million oz. of gold between 1985-2020 at an average grade of 30-40 g/t gold.
In addition to advancing its Japanese projects, the company will also allocate funds towards its copper exploration in the Zambian copper belt and the South Mountain zinc project in Idaho. BeMetals said it will also accelerate its efforts in identifying and securing potential development projects.
