BeMetals lands US$5M loan from B2Gold

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 US$5-million loan from strategic investor B2Gold (TSX: BTO). The loan, which bears interest at 4.7% per annum and matures on Aug. 4, 2025, 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 $3 million,” John Wilton, president and CEO of BeMetals, commented.

“The funds will continue to be diligently deployed to create value for investors with ongoing drilling of our exciting 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 20 sq. km in Hokkaido.

The property, formerly known as Seta River, was drilled by Japan’s metals mining agency in the 1990s. During that time, drilling returned intervals of high-grade gold including 17.5 metres grading 8.15 grams gold per tonne and 18.7 metres grading 5.01 grams gold. Little work was conducted on the property since then.

B2Gold is a strategic investor in BeMetals, holding around 19% of its outstanding shares. B2Gold CEO Clive Johnston was a founding director of the company, and remains on the board.

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 grams gold per tonne.

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. It will also accelerate its efforts in identifying and securing potential development projects.