Auckland, New Zealand: 20 April 2020 – Besra Gold Inc (BGI) is very pleased to announce that the Ontario Securities Commission (OSC) has issued an Order revoking the failure-to-file cease trade order (FFCTO) issued by the OSC on November 1, 2019.

The FFCTO was issued as a result of BGI failing to file its audited annual financial statements and management’s discussion and analysis (MD&A) for the fiscal year ended June 30, 2019 within the timeframe as required under National Instrument 51-102 Continuous Disclosure Obligations and related certifications (the NI 52-109 Certificates) as required by National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings.

BGI subsequently failed to file other continuous disclosure documents within the prescribed timeframe in accordance with the requirements of Ontario securities law, including the unaudited interim financial statements, together with the corresponding MD&A and NI 52-109 Certificates for the interim period ended September 30, 2019. The outstanding financial statements, MD&A and NI 52-109 Certificates have since been filed and are available under BGI’s corporate profile at www.sedar.com.

In filing its audited annual financial statements for the fiscal year ended June 30, 2019, BGI impaired its main asset, the Bau Gold Project in East Malaysia.  BGI used fair value estimates as the basis for looking at the impairment of its assets.  BGI responded to specific indicators or triggers for further impairment testing including, but not limited to, the minimum level of spending/investment on its sole asset for the fiscal year ended June 30, 2019. BGI used independent party input on asset value based on the Enterprise Value (EV) per resource ounce metric, applied in context to a potential future re-listing of BGI’s securities on a stock exchange with the Bau Gold Project as BGI’s sole asset.

The methodology used by BGI in its impairment testing applied an EV per resource ounce basis. BGI based its analysis on the review of a variety of comparable companies.  BGI considered this to be the appropriate valuation methodology for the asset as disclosed in the audited annual financial statements for the fiscal year ended June 30, 2019.

A full copy of the Order is available here.