Borneo close to complete $3m financing deal
Tuesday, March 24 2015 - 01:12 AM WIB
US firm Borneo Resource Investments Ltd, a US firm which mines for gold in Indonesia, announced Monday that it is close to completing an agreement pursuant to which a Chinese-based investor group will invest a total of US$3 million in the New York-listed company through the purchase of common shares before the end of the second quarter.
?This investment is being made in conjunction with the company's recently announced proposal to seek a secondary listing on the GEM Board of the Hong Kong Stock Exchange,? said Borneo, which operates gold mines in Ratatotok, Minahasa Tenggara Regency, North Sulawesi, in a statement.
The proposed investment is subject to completion of an onsite due diligence of the company's gold mining operations in Indonesia, scheduled for the first week of April. The first tranche of the investment is currently anticipated to close by April 10, 2015, added Borneo, which is currently listed on the New York Stock Exchange over the counter (OTC).
Nils Ollquist, Chairman and CEO of Borneo commented, "This proposed investment comes at a time when Chinese companies are stepping up their investment activities in precious metal producers, particularly gold producers, in Asia. As a result of the intensive development of our ore processing capabilities at our Ratatotok properties over the past few months, we have attracted interest because our capacity has increased significantly. Additionally, the potential investors is pursuing this investment to initiate a proposed secondary listing of our shares in Hong Kong."
"Proceeds of the investment will enable us to provide funds to acquire and develop additional properties in the area, expand our capital investment program and repay existing short-term convertible notes," he added.
Editing by Reiner Simanjuntak