Last year, Phuoc Son Gold Company Ltd under Besra Gold Inc – a Canadian-Australian joint-venture corporation – owed approximately $19 million to contractors, the bank and the government.— Photo tuoitre.vn

QUANG NAM (Biz Hub) — Besra has received formal notification from the Vietnam Ministry of Finance that export tax assessments totaling US$12 million against Bong Mieu Gold Mining Company and Phuoc Son Gold Company have been repealed.

The Ministry of Finance has provided the Company copies of the final resolutions on Besra's second complaint against the General Department of Customs, relating to Bong Mieu Gold Mining Company and Phuoc Son Gold Company repeal the tax claim applied for goods exported and imported by Besra's operating companies in Viet Nam.

"We are of course delighted by this news that our position on this assessment has been vindicated. Besra has always complied with every aspect of the laws and regulations of Viet Nam and we have worked hard to prove this to the authorities in relation to this matter," Besra CEO John Seton said.

"This tax assessment has been hanging over us for more than a year and has caused the company significant hardship. Our ability to import supplies and equipment was suspended for a period, as was our ability to export gold. Additionally, the $12 million negative assessment kept investors away and limited our access to credit facilities. With the ruling now behind us, we can now rebuild our production in Viet Nam," he said.

Bong Mieu Gold Mining Company. — Photo dantri

"With this decision having been considered at all levels of government, including local tax authorities, the Ministry of Finance and the Prime Minister's office, we are heartened that Besra and its operations at Phuoc Son and Bong Mieu in central Viet Nam continue to have the full support of the government."

"Whilst this ruling closes an exceptionally difficult 12 months for the company, there is still much work to be done to repair the damage it has caused. Coupled with the severe weather events of November 2013 that resulted in suspension of operations at Bong Mieu, we can safely put 2013 down as our most difficult year to date. With the reversal of the export tax ruling, production at Bong Mieu re-commencing from 1 May, and the persistence and hard work of our team in Vietnam, we are already seeing improvements in Vietnam operations," said Seton.

Last year, Phuoc Son Gold Company Ltd under Besra Gold Inc – a Canadian-Australian joint-venture corporation – owed approximately $19 million to contractors, the bank and the government.

The company has invested more than $115 million in Bong Mieu and Phuoc Son (Besra Viet Nam) in Quang Nam Province.

Besra Viet Nam's gold production from its two plants reached 60,187 ounces last year, according to officials. – VNS