Besra Disputing Vietnam General Department of Customs Tax Claim
TORONTO, ONTARIO -- (Marketwired) -- 07/05/13 -- Besra
(TSX:BEZ)(ASX:BEZ)(OTCQX:BSRAF)(FRANKFURT:OP6) is currently disputing
two tax claims by the Vietnam General Department of Customs (GDC)
against Phuoc Son Gold Company (PSGC) and Bong Mieu Gold Mining
Company (BMGMC), Besra's two operating gold companies in Vietnam.
The GDC has made an assessment that PSGC and BMGMC should pay a total
of 250 billion Vietnamese dong (approximately USD 12 million) in
In Vietnam, gold exported at 99.99% does not attract any export duty.
GDC is claiming that during 2011 and 2012, several shipments did not
meet 99.99% and therefore likely to a 10% tax.
Besra strongly disputes this assessment as every shipment in question
was refined in Vietnam to 99.99% by ACB Gold Center and certified
99.99% by Quality Assurance and Testing Center 3 (QuaTest3), the
official government-testing centre.
Besra exports gold to the Argor-Heraeus SA (Argor) refinery in
Switzerland, to certify the gold as "good delivery" before it is
sold. Argor's assays have always confirmed good delivery within
normal industry tolerance.
PSGC and BMGMC each filed official complaints under the Vietnamese
Law on Complaints on 16 May 2013. The law provides for companies to
dispute assessments made by government bodies in Vietnam in the first
instance in an appeal heard by GDC, followed by an appeal to the
Ministry of Finance and, finally, in proceedings before an
administrative court of law. The Company intends on exhausting all
rights of appeal and is of the view, supported by external legal
counsel that the claims brought by the GDC are without merit.
Discussions with the Vietnamese Government are continuing to resolve
the matter promptly.
Besra is a diversified gold company focused on four advanced
properties; the Bau Goldfield in East Malaysia, Bong Mieu and Phuoc
Son in Central Vietnam, and Capcapo in the Philippines. Besra expects
to expand existing gold production capacity in Vietnam over the next
two years and is projecting new production capacity from Bau Central
during late 2015 (start up and production forecasts will depend on
the result of the current Jugan feasibility, which is scheduled for
completion in 2013).
Besra Gold Inc.
John A G Seton, Chief Executive Officer
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.
Besra Gold Inc.
James W Hamilton, Vice-President Investor Relations
+1 (416) 572 2525
TF: 1 888 902 5522 (North America) / 800 308 602 (Australia)
+1 (416) 572 4202 (FAX)
Press spacebar to pause and continue. Press esc to stop.