Borneo Resource Investments Improves Balance Sheet Through Debt Restructuring
19 Dezembro 2013 - 10:00AM
Marketwired
Borneo Resource Investments Improves Balance Sheet Through Debt
Restructuring
Debt Reduced by $2,500,000 in Exchange for 100,000 Shares of
Borneo Stock and a Promissory Note
BOTHELL, WA--(Marketwired - Dec 19, 2013) - Borneo Resource
Investments Ltd. (OTCQB: BRNE) (the "Company" or "Borneo"), a
mining company that mines gold and develops producing gold mines as
well as coal mining properties in Indonesia, today announced it
has, through its subsidiary PT Puncak Kalabat, executed a Debt
Restructuring Agreement with the seller of the "Talawaan Property,"
a producing gold mine.
Borneo had acquired Talawaan for a purchase price of $5,000,000
and owed an aggregate balance of $4,650,000 as of December 17,
2013. Per the Debt Restructuring Agreement executed on December 17,
2013 the parties have agreed to reduce the balance to be paid by
$2,500,000 from $4,650,000 to $2,150,000, in exchange for 100,000
shares of Borneo stock and a non-interest bearing promissory
note.
For September 30, 2013, the Company had reported current
liabilities of $7.1 million, including the amount owed for the
purchase of Talawaan and a total stockholders' deficit of $595,052.
On a proforma basis, applying the debt restructuring to the
September 30, 2013 balance sheet, the Company would have reported
current liabilities of $4.6 million and a total stockholders'
equity of $1.9 million.
Borneo started gold production at Talawaan in June of 2013 and
completed its first full quarter of production at the property in
the third quarter of 2013, putting the Company into profitability
for that quarter.
"This Debt Restructuring Agreement is a result of our
strengthening relationship with the seller and other leaders in the
region. Following our acquisition of Talawaan, we have acquired two
additional gold properties and we are currently evaluating other
opportunities as well. The seller lowered the amount owed for
Talawaan in exchange for equity, a continuing business
relationship, and to obtain a promissory note with a fixed payment
schedule. We believe the seller of Talawaan is pleased to become a
shareholder of Borneo and we look forward to doing more business
with him and other property holders in the region," commented
Borneo CEO Nils Ollquist.
"With this transaction we improve our balance sheet and
strengthen our financial position. This will be very important as
we pursue additional funding opportunities and work towards a
listing on a national securities exchange in the United States,"
Ollquist concluded.
About Borneo Resource Investments Ltd.
Borneo Resource Investments Ltd. (OTCQB: BRNE) is a mining
company that mines gold and develops producing gold mines as well
as coal mining properties in the Republic of Indonesia. Borneo's
current assets include three gold properties, two of which are
producing gold. Cash flow-producing investments in gold properties
help fund Borneo's operations and investments in gold, while the
Company develops high value, longer-term investments in thermal
"coal concessions," which are properties that can be mined for
coal. Borneo currently has one coal concession in the Borneo region
of Indonesia. Indonesia was the 8th largest gold producing
nation in 2012 and the world's largest exporter of coal, with $25
billion exported in 2012.
Forward-Looking Statements
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.
Please join our email distribution list by contacting us at
ir@borneore.com.
Related Links: http://www.borneore.com
Investor Relations Contacts: Borneo Resource Investments Ltd. R.
Scott Chaykin CFO schaykin@borneore.com or Corporate Profile, LLC
Dilek Mir Managing Director 310-591-5619
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