HONG KONG, China, via ETELIGIS INC., 05/19/2015 – – Borneo Resource Investments Ltd. (OTC Pink: BRNE) (PINKSHEETS: BRNE), (the "Company" or "Borneo") today filed its quarterly report on Form 10Q.
In response to this quarterly filing, Nils Ollquist, Chairman and CEO, commented: “The filing of this quarterly report effectively concludes what has been a turbulent period for our Company that was an unfortunate byproduct of an aggressive program of restructuring and reorganization that, we believe, has produced a stronger and vastly more efficient business.”
Mr. Ollquist continued: “We originally entered the gold business in our key market of Sulawesi, Indonesia, through our investment a 50 hectare property and associated processing facilities in an area close to Manado, the regional capital. Although this operation was revenue producing, our experience, over several quarters of operation, raised doubts over our ability to fully integrate the business within our operational strategy going forward. As a result of these issues, and the fact that we have been developing alternative fully independent and controlled gold mining operations in another part of Sulawesi, the difficult decision was taken to write off the initial investment at the end of last year. Although our actual cash investment in these operations was limited, the amount of the write off involved the entire carrying cost of the asset, including a property valued at $2 million, as a result of debt on the property which we have now settled in the second quarter. As a result of this settlement of debt on the property, we are we expect to be able to write off the liabilities associated with the original assets in 2015. This elimination of debt will both strengthen the balance sheet and provide the basis for enhanced revenue for the balance of the year.
Mr. Ollquist continued: “During the last 6 months, management has been pursuing an aggressive expansion of our own fully controlled gold operations. We have purchased two properties totaling approximately 16 hectares and two fully operational leach pads with a total processing capacity of around 12,500 tons of ore. We are currently planning the construction of an additional higher capacity 10,000 ton pad. We have also focused on developing fully integrated infrastructure around the new operations, with carbon filtration, smelting, tailing ponds, power and water supply, storage and mining camp facilities all of which are enhanced with 24 hour security. Additionally, our constructive partnership with local government increases the efficiency of mining operations and enhances our ability to contribute and become a part of the local community in areas where we operate. Earlier this month an initial run of a two run cycle was completed on our new higher capacity leach pad. The test run, involving significantly less ore on the base, resulted in over 1kg of 99% pure gold which will be sold this month. As a result of the aggressive implementation of our diversification strategy, the Company will be revenue generating from this month onwards and believes it will achieve gross profitability in the second quarter of 2015.
Mr. Ollquist concluded: “We understand and empathize with our shareholders that the past few months have been difficult ones as we have moved through the restructuring process. The significant addition to our short term debt portfolio since last July has been largely driven by this process and it remains our intention to refinance this debt, where possible, with longer term strategic financing. To this end, our strategy of pursuing a secondary listing of the Company’s shares on the Hong Kong Stock Exchange remains in place and, if anything, enhanced by projected profitability for the ensuing two quarters.
In summary, management is quite clear and determined in implementing its strategy to build a strong and profitable operation based on a portfolio of high quality gold properties and we look forward to continuing support from our shareholders as the benefits from our efforts over the past year come on stream.”
About Borneo Resource Investments Ltd.:
Borneo Resource Investments Ltd. (OTC Pink: BRNE) is a mining company that owns and develops gold producing properties in the Republic of Indonesia
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.
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SOURCE: Borneo Resource Investments Ltd.