BOTHELL (Yosefardi) – Borneo Resource Investments Ltd., a mining company that mines gold and develops producing gold mines as well as coal mining properties in Indonesia, has, through its subsidiary PT Puncak Kalabat, finalized the purchase of a producing gold mining property for $250,000, including an initial $150,000 payment in cash and two subsequent payments of $50,000 each.
Targeted funding for the acquisition was provided by a private investor and current shareholder of the Company through a 5-year loan with an annual interest rate of 5%. The term loan has no conversion provision and no warrants were attached.
The acquired property, with the project name of Ratatotok South, is located near the village of Ratatotok in the Southeast Minahasa Regency of the North Sulawesi Province of Indonesia. The property is adjacent to the southern border of one of Borneo’s other gold mining properties, Ratatotok.
Ratatotok South comes with assets including a stockpile of ore on site ready for processing, as well as significant infrastructure and equipment. Borneo plans to immediately begin supplemental excavation, with initial production slated to commence before the end of December 2013.
Gold production at Ratatotok South would further supplement Borneo’s current production at its first producing gold mine, Talawaan, which completed its first full quarter of production in the third quarter of 2013. Borneo reported over $500,000 in revenues and over $40,000 in net income in the third quarter of 2013 based on mining at Talawaan alone.