Besra Gold Inc. responded to Quantum Metal Recovery Inc.’s statement that its legally binding Gold Purchase Agreement with Besra might be cancelled if the Bau Gold Project in Malaysia does not produce gold in mineral concentrate by 31 December.
To provide additional clarity around the matter, Besra confirmed that the clause does not require the pouring of gold, rather, it requires that gold in mineral concentrate is produced from Bau on or before 31 December.
The gold mining company said that in order to achieve the requirement, it intends to have a pilot plant commissioned that produces mineral concentrate.
The pilot plant is expected to have a capacity of up to 200 tonnes per day, which is not a commercial-scale operation and is not intended to produce gold but merely concentrate.
Additionally, Besra must demonstrate that by the end of the year, it can physically produce a concentrate from Bau that contains gold.
The company’s board of directors, citing studies undertaken by China-based ZHJ Minerals Company Limited on Bau, said it considers the requirement to produce concentrate as highly achievable.
