BOTHELL, Wash., Oct. 12, 2011 /PRNewswire/ -- Borneo Resource Investments Ltd. (OTCPK: BRNE), a Company that recently acquired Interich International Limited and changed its name from Aventura Resorts, Inc., announced, that as part of the ongoing implementation of its strategy of acquiring natural resources in the Kalimantan Province of the Republic of Indonesia, it has signed two new significant agreements to acquire properties with coal reserves.
These agreements have been entered into by Interich International Limited. The first agreement is for the mining rights on a 1,300 hectare property which the Company believes, pending a final geological study, contains estimated coal reserves of 8 million tons. The second agreement is a memorandum of understanding for the mining rights for an additional 2,000 hectare property, which the Company believes will contain over 12 million tons in estimated coal reserves. Given the current median market price of steaming coal of approximately $50 per ton, the coal located on these two properties, prior to the costs of extraction and shipping, could possibly exceed $1 billion. Both properties currently have both mining and production licenses, and will be able to export the coal from Indonesia. The Company indicated that as it acquires the mining rights for properties and conduct the necessary geological surveys, it will disclose the proven levels of the properties reserve estimates utilizing international standards. The Company has retained the services of an international mining geology firm in Jakarta, Indonesia to start this process.
The Company has initiated discussions with potential strategic partners in Europe, Asia and Australia to bring in additional capital and expertise to our mining platform. These strategic partners may invest in infrastructure for the properties under its control, both for mining and construction of onsite power generation facilities, to take advantage of the high quality coal located on its properties. This will significantly reduce the capital requirements that development of the properties would otherwise impose in exchange for revenue sharing for the coal mined and power produced.
In the process of conducting geological studies and establishing operations in Indonesia, the Company also gained access to significant quantities of coal which it will monetize. The Company projects that its first trade will be on approximately 120,000 tons of medium quality coal which will be sold to an Indian end user. This initiative should result in the generation of revenue by the end of 2011. These opportunities will enable a trading business to be operated in parallel to the acquisition and development of mining properties.
Even as the Company focuses on thermal coal, to the extent that its coal concessions are heavily forested (Kalimantan contains some of the largest reserves of tropical rain forest outside the Amazon), timber licenses will be obtained so that in the early stages of the development of the coal concessions the timber can be harvested using sustainable harvesting practices. Revenue from such timber sales will provide funding for mining operations and enhance the Company's profits.
"We have very strong relationships in Kalimantan and I am pleased that they are providing us with access to extraordinary opportunities in the region," said Nils Ollquist, CEO and President of Borneo Resource Investments. Mr. Ollquist further stated that, "We will continue to build value for our shareholders by not only increasing our holdings in the region, but also by increasing our visibility and transparency with our shareholders."
The Company's corporate activities continue to move forward. The Company is building its management team and Board of Directors. In anticipation of filing a Form 10 with the Securities and Exchange Commission before the end of 2011, the Company is the process of being audited and preparing the necessary documents. Mr. Ollquist noted, "Our ultimate goal is to list our shares on a national securities exchange in the United States and our actions over the last several months will bring us closer to that goal."
About Borneo Resource Investments Ltd. (BRNE).
With its international headquarters in the Seattle, Washington area, Borneo Resource Investments Ltd. through its wholly-owned subsidiary Interich International Limited, obtains mining concessions to explore and develop coal reserves in the East Kalimantan region of the Republic of Indonesia.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. For example, we are using forward-looking statements when we discuss the indications that the value of our coal reserves. These forward-looking statements are based on the current expectations of the management of Borneo Resource Investments Ltd. only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in the price of coal, a change in the estimate of coal on our concessions, an inability to extract the coal reserves and changes in Indonesian law. Except as otherwise required by law, Borneo Resource Investments Ltd. undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
OFS Capital Group
SOURCE Borneo Resource Investments Ltd.