Besra will extend its payment schedule for the increased ownership of North Borneo Gold Sdn Bhd over the next three years to reduce the demand on its cashflow while gold prices remain soft.
The company’s chief executive officer John Seton says the $9 million payable remains unchanged, and upon completion of the payments in September 2015, Besra will own 93.55% of the Bau Gold Project in East Malaysia.
“This revised payment schedule will improve cashflow during the current ebb in gold price. The new arrangements have been negotiated as part of Besra’s program of cost reduction and greater efficiencies. It’s good news for us as it spreads payments into 2015 and greatly reduces the cashflow demand on the company over the next six to nine months.”
The revised payment schedule will see Besra pay instalments of between $600,000 and $800,000 every three to six months and then five separate payments of $1 million from December 2014 to September 2015.
Bau is a large brownfield project, owned by a consortium that holds rights to consolidated mining tenements covering much of the historic Bau Goldfield in Sarawak within the Borneo metalliferous belt, which contains many other important gold mining camps, including Kelian, Mamut and Masupa.
The geology and mineralization of the Bau Goldfield have been compared with that of the 60 million ounce Carlin District of Nevada, USA.
Besra is also focused on the Bong Mieu and Phuoc Son properties in Central Vietnam and Capcapo in the Philippines. The company expects to commence new production capacity from Bau Central during late 2015.