Besra has closed its Bong Mieu Gold Mine temporarily owing to the local tax department again raising issues that are preventing the company from selling gold. In a statement last week, Besra’s executive chairman David Seton said the mine had been shut until the issues are resolved. “Whilst this is frustrating, we think it will be temporary.”
Before the shut-down small-scale production had been taking place at Bong Mieu with the mine producing 20-25 ounces per day.
David Seton said a licence application was also being prepared to allow development of the Ho Ray Thac Trang deposit at Bong Mieu and this should be submitted before the end of the month.
“Plans for re-starting the Phuoc Son project are ready and awaiting finalizing of the arrangements with our new local partner, VietABank.”
He said the sizeable insurance claim from typhoons in 2014 was being progressed with renewed zeal now that the company had appointed a strong facilitator/negotiator.
Regarding Besra’s financing issues, David Seton stated: “Obviously the financing with George Molyviatis/InCoR has been frustratingly slow in closing but still moving forward. The issue the directors face, however, is that we have an extremely difficult market and raising new funds is not easy. As a consequence, while Mr Molyviatis continues to support the company with needed funds and while the directors are of the view that he will close our support for him remains.
“Management is also perversely restricted in that the Ontario Securities Commission, by way of the cease trade order, specifically prevents us from pursuing or discussing any financing other than the Molyviatis one they have approved. As a result of this we have been actively involved in helping him close. Although nothing can be promised, considerable progress has been made, particularly in the last week.”
He also said that a number of potential partners for the Central Bau project in Malaysia had entered the landscape and various options are also being discussed with them. As each of them conducts their due diligence, we are reminded what excellent prospects this project holds for Besra.