Borneo Resource Investments acquires 4th gold mine in RI
Saturday, February 1 2014 - 04:21 AM WIB
US firm Borneo Resource Investments Ltd., a mining company that mines gold and develops producing gold mines as well as coal mining properties in Indonesia, announced it has, through its subsidiary PT Puncak Kalabat, finalized the purchase of another producing gold mining property.
The company said in a statement obtained Saturday that the 15 hectare property, with the project name Ratatotok Southeast, was acquired for $250,000. The property is located in the central section of a well-established gold reef structure. It is situated adjacent to two other Borneo gold properties, Ratatotok and Ratatotok South, located near the village of Ratatotok in the Southeast Minahasa Regency of the North Sulawesi Province of Indonesia.
No additional capital investments for mining infrastructure are needed at Ratatotok Southeast. All three of Borneo's contiguous properties in the Ratatotok region: Ratatotok; Ratatotok South; and Ratatotok Southeast; will all use the mining equipment and infrastructure located at Ratatotok South, which was acquired by Borneo, also through PT Puncak Kalabat, in December 2013.
"With this acquisition completed, we expect that by the third quarter of 2014 we will be mining and realizing revenues from three of our four gold mining properties. Mining at our first producing gold mine, Talawaan, has generated revenues and gross profits since the third quarter of 2013. We are now active with mining operations at our second producing property, Ratatotok South, which will increase our revenues in the first quarter of 2014. With production and revenues from our third producing gold mine, Ratatotok Southeast scheduled for the third quarter of this year, we expect 2014 will be a strong year for us with a full four quarters of revenues," stated Borneo CEO Nils Ollquist.
"The economics of production are very favorable to us because these three Ratatotok properties are contiguous, creating logistical and infrastructure efficiencies. In addition, this geographic area is a well-recognized gold reef structure where we anticipate extraction costs may also be quite favorable for us. Our near term operational and strategic goals include beginning production at acquired properties as soon as feasible, improving the infrastructure and production facilities at each property, and increasing our inventory of producing gold properties through acquisition," Ollquist added.
Editing by Reiner Simanjuntak