Borneo Resource Investments Acquires Producing Gold Mine
13 December 2013 - 5:54AM
Marketwired
Borneo Resource Investments Acquires Producing Gold Mine
Company's 2nd Producing Gold Property Has Significant
Infrastructure Including Processing Equipment
BOTHELL, WA--(Marketwired - Dec 12, 2013) - Borneo Resource
Investments Ltd. (OTCQB: BRNE) (the "Company" or "Borneo"), a
mining company that mines gold and develops producing gold mines as
well as coal mining properties in Indonesia, today announced it
has, through its subsidiary PT Puncak Kalabat, finalized the
purchase of a producing gold mining property for $250,000,
including an initial $150,000 payment in cash and two subsequent
payments of $50,000 each. Targeted funding for the acquisition was
provided by a private investor and current shareholder of the
Company through a 5-year loan with an annual interest rate of 5%.
The term loan has no conversion provision and no warrants were
attached.
The acquired property, with the project name of Ratatotok South,
is located near the village of Ratatotok in the Southeast Minahasa
Regency of the North Sulawesi Province of Indonesia. The
property is adjacent to the southern border of one of Borneo's
other gold mining properties, Ratatotok. Ratatotok South comes with
assets including a stockpile of ore on site ready for processing,
as well as significant infrastructure and equipment. Borneo plans
to immediately begin supplemental excavation, with initial
production slated to commence before the end of December 2013.
Gold production at Ratatotok South would further supplement
Borneo's current production at its first producing gold mine,
Talawaan, which completed its first full quarter of production in
the third quarter of 2013. Borneo reported over $500,000 in
revenues and over $40,000 in net income in the third quarter of
2013 based on mining at Talawaan alone.
The Ratatotok South property is approximately 8.5 hectares in
size and is located in the middle of a well-established gold reef
structure. Significant reserve assessment work for the property was
completed by the seller, who commissioned an independent mining
geologist. The analysis involved a comprehensive set of drill tests
throughout the property. These tests show ore grades ranging from
3-15 grams per ton. Borneo's in-house geologist estimates that the
ore body extends from approximately 15 cm below the surface to
around 100 meters in depth and covers the entire property.
Significant infrastructure situated on the property was
purchased as part of the transaction price including an ore crusher
and other ore processing equipment.
"This is a significant acquisition for us that will further
boost our gold production levels, revenues and contribute to gross
profits. Based on our analysis, processed ore at this site may
produce 99% pure gold," commented Borneo CEO Nils Ollquist.
Mr. Ollquist went on to say, "The structure and quality of the
ore body on the property means that the extraction process used at
Ratatotok South will be significantly less labor intensive and at a
lower cost than the extraction method employed at our Talawaan
property."
"Having Ratatotok South strategically located, with all of its
infrastructure and equipment, adjacent to Ratatotok which we plan
on mining in the near future, increases the value of Ratatotok and
accelerates our timeline for mining all three of our current gold
properties. We are particularly pleased with how we financed this
transaction. The lender of the $150,000 note is a current
shareholder of the Company. We believe this is an investment that
will generate a very favorable ROI for Borneo," Ollquist
concluded.
About Borneo Resource Investments Ltd.
Borneo Resource Investments Ltd. (OTCQB: BRNE) is a mining
company that mines gold and develops producing gold mines as well
as coal mining properties in the Republic of Indonesia. Borneo's
current assets include three gold properties, two of which are
producing gold. Cash flow-producing investments in gold properties
help fund Borneo's operations and investments in gold, while the
Company develops high value, longer-term investments in thermal
"coal concessions," which are properties that can be mined for
coal. Borneo currently has one coal concession in the Borneo region
of Indonesia. Indonesia was the 8th largest gold producing
nation in 2012 and the world's largest exporter of coal, with $25
billion exported in 2012.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and federal securities
laws. Words such as "believe", "estimate", "will be", "will",
"would", "expect", "anticipate", "plan", "project", "intend",
"could", "should" or other similar words or expressions often
identify forward-looking statements. All statements other than
statements of historical fact are forward-looking statements,
including, without limitation, statements regarding our outlook,
projections, forecasts or trend descriptions. These statements do
not guarantee future performance, and we do not undertake to update
our forward-looking statements.
For example, we are using forward looking statements when we
discuss the indications that estimate the potential revenue that
may be generated from this property. These forward-looking
statements are based on the current expectations of the management
of Borneo Resource Investments Ltd. only, and are subject to a
number of factors and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. The following factors, among others, could cause actual
results to differ materially from those described in the
forward-looking statements: changes in the price of natural
resources, a change in the estimate of natural resources on our
concessions, a change in the ability to extract the natural
resources, changes in Indonesian law, risks associated with
counterparty default in any of our agreements and the ability to
acquire funding. Except as otherwise required by law, Borneo
Resource Investments Ltd. undertakes no obligation to publicly
release any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
Please join our email distribution list by contacting us at
ir@borneore.com.
Related Links: http://www.borneore.com
Investor Relations Contacts: Borneo Resource Investments Ltd. R.
Scott Chaykin CFO schaykin@borneore.com or Corporate Profile, LLC
Dilek Mir Managing Director 310-591-5619
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