SOURCE: Besra Gold Inc.

Besra Gold Inc.

October 21, 2015 11:15 ET

Besra Commences Restructuring Proceedings

AUCKLAND, NEW ZEALAND--(Marketwired - October 21, 2015) - Besra Gold Inc. (Besra) announces that, after consideration of all viable alternatives, its Board of Directors has determined that it is in the best interests of Besra and its stakeholders for Besra to commence restructuring proceedings under the Canadian law equivalent of US Chapter 11. This restructuring process will allow Besra to deal decisively with its cost and debt structure and to narrow its strategic focus in an effective and timely manner. The proceedings will also facilitate a restructuring using a more straightforward process that doesn't presently exist. Besra made this decision with the unanimous approval of its Board of Directors after thorough consultation with its advisors and extensive consideration of all other alternatives.

Besra's liquidity position deteriorated as a result of various factors, including, but not limited to, negative cash flow from operations in Vietnam caused by typhoons and government intervention, and a consequent inability to secure all required capital until its unsecured loan-notes were restructured. However the subsidiary operations are recovering with Bong Mieu back in production and Phuoc Son in preparation for re-opening.

The previously announced financing is currently on hold pending the outcome of the restructuring. Besra anticipates that once balance sheet relief is provided as an outcome of the restructuring, equity financing can be more easily progressed.

Besra CEO, John Seton, said, "While we had reached agreement in principle with a large number of our note-holders, there exists no existing, stream-lined formal mechanism by which the different notes may be dealt with efficiently and effectively in a single arrangement or compromise." He added, "These types of administration systems, which exist in Canada and the US, are effective. You can get things done."

Accordingly, on 19 October 2015, Besra filed a Notice of Intention to make a proposal under the Bankruptcy and Insolvency Act (Canada) (BIA). The Notice of Intention has granted Besra BIA protection for an initial period of 30 days, expiring on 18 November 2015. While under protection, creditors and others are stayed from enforcing any rights against Besra, giving Besra the opportunity to pursue restructuring alternatives.

Pursuant to the Notice of Intention, MNP Ltd has been appointed as proposal trustee that will monitor the ongoing operations of Besra while under BIA protection (in such capacities, the "Trustee"). All inquiries regarding the BIA proceedings should be directed to the Trustee. Information about the BIA proceeding will be available on the Trustee's website at

Besra Gold Inc

John A G Seton, Chief Executive Officer


Besra -

Besra is a diversified gold mining company focused on the exploration, development and mining of mineral properties in South East Asia. The Company has three key properties; the Bau Goldfield in East Malaysia and Bong Mieu and Phuoc Son in Central Vietnam. Besra expects to expand gold capacity in Vietnam over the next two years and is projecting new production capacity from the Bau gold project.

Cautionary Note Regarding Forward-Looking Statements

Certain of the statements made and information contained herein is "Forward-looking information" within the meaning of applicable securities laws, including statements concerning our plans at our producing mines and exploration projects, which involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, failure to establish estimated resources or to convert resources to mineable reserves; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; delays in obtaining or failure to obtain required governmental, environmental, or other project approvals; changes in national and local government legislation or regulations regarding environmental factors, royalties, taxation or foreign investment; political or economic instability; terrorism; inflation; changes in currency exchange rates; fluctuations in commodity prices; delays in the development of projects; shortage of personnel with the requisite knowledge and skills to design and execute exploration and development programs; difficulties in arranging contracts for drilling and other exploration and development services; dependency on equity market financings to fund programs and maintain and develop mineral properties; and risks associated with title to resource properties due to the difficulties of determining the validity of certain claims and other risks and uncertainties, including those described in each management's discussion and analysis released by the Company. In addition, forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management; the assumed long-term price of gold; the availability of permits and surface rights; access to financing, equipment and labour and that the political environment in the jurisdictions within which the Company operates will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements, which speak only as of the date they are made. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information

  • For Further Information
    Steve Wilson
    Corporate Communications Director, Besra
    T: +64 9 9121765
    M: +64 21675660