Besra Update on Vietnam Tax, Royalty and Production Issues
TORONTO, ONTARIO -- (Marketwired) -- 09/27/13 -- Besra (TSX:BEZ)
(ASX:BEZ) (OTCQX:BSRAF) (FRANKFURT:OP6) announces that the Vietnam
General Department of Customs has suspended the enforcement of its
export tax assessments (see Besra press release 5 July 2013) pending
completion of the complaints appeal process. The Company regards this
as a positive development.
The Company also advises that it has recently been made aware of a
proposal submitted by Vietnam's Ministry of Finance to the National
Assembly to increase royalty rates on gold and other minerals.
Vietnam's law allows royalties on gold to range between 9% and 25%.
Currently the Company's Phuoc Son mine attracts a 15% royalty and its
Bong Mieu mine 3%. The Bong Mieu royalty is fixed in its investment
certificate whereas the Phuoc Son royalty is determined by the law
applicable from time to time. The position in Vietnam is in stark
contrast to East Malaysia where the Company's flagship Bau property,
currently nearing completion of Stage One feasibility study, enjoys a
zero percentage royalty rate.
Besra CEO, John Seton, said, " Any increase; however, small, would
seriously impact Besra's ability to commit further investment capital
in Vietnam. Any reduction in investment into our operations in
Vietnam would lead to lower production and therefore ironically,
reduced royalty and taxation revenue to Vietnam. Besra and its
partners are continuing to lobby for the royalty to be reduced to 9%
so it can continue with plans to make significant further foreign
investment in the country and increase production to over 100,000 oz
pa and thereby increase the Government's revenue from the projects."
The royalty rates are expected to be discussed and decided upon by
the Standing Committee of the Vietnam National Assembly in
Finally, the Company states that production output and costs of
production at its Phuoc Son property in central Vietnam were affected
resulting from delays importing mining equipment and replacement
parts. The backlog in necessary equipment and parts are scheduled to
clear by mid-October.
The delays will mean that Quarter One's ounce production will be less
than planned and at higher costs;
however, subject to any production
reductions resulting from royalty increases; the Company is
maintaining its production forecast for FY2014 of 65-70,000 oz.
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 - www.besra.com
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
+1 (416) 572 2525
+1 (416) 572 4202 (FAX)
TF: 1 888 902 5522 (North America)
Besra Gold Inc
+64 9 9121765 or M: +64 21675660
TF: 800 308 602 (Australia)
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