History
Borneo Resource Investments, an Indonesian resource aggregator, bought two gold properties in 2013 on heavy debt, restructured part of it with shares, and deregistered from SEC reporting in 2017.
2013: Moving into gold
Borneo Resource Investments, a Nevada company based in Bothell, Washington, set out to gather Indonesian natural resource assets. Its earlier holdings were coal concessions and options. In February 2013 it signed an option to buy a gold-producing property in North Minahasa, North Sulawesi, from PT Puncak Kalabat for $5,000,000. It was the company's first gold asset, and it had not determined the gold reserves; production figures came from the owner.
In March the option became a purchase agreement at the same price, on a new payment schedule. The chief executive lent the company $250,000 on an unsecured five-year note at 5%. Later that month Borneo agreed to buy a second property, 30 hectares at Ratatotok in Southeast Minahasa, for $2,000,000. It had no mining operations, and the company said it was in advanced talks on financing it had not announced.
2013: Restructuring the debt
In June the March agreements were replaced with new ones with the owner, Sanding Longdong. Borneo also agreed to buy 90% of PT Puncak Kalabat through CEO Nils Ollquist, who would hold the shares until Indonesian investment board approval and then sell them to the company for $4,500. Grace Sarendatu, who sold shares in the deal and was the company's long-time lawyer, became a director. The CEO and a director were therefore counterparties to the share sale. The 50-hectare Talawaan property carried a $4,895,000 payable and Ratatotok $1,995,000, with part due on June 30 and the rest on December 31, 2013.
On December 23 Borneo restructured the Talawaan debt. The balance fell by $2,500,000, from $4,650,000 to $2,150,000, in exchange for 100,000 new shares and a non-interest-bearing note. The company said this would have turned a $595,052 stockholders' deficit at September 30, 2013 into $1.9 million of equity on a pro forma basis.
2014-2017: Quiet record
The record after December 2013 is quiet. Whether the investment board approved the share transfer, and how the Ratatotok payments ended, is not stated. On July 17, 2017, Borneo deregistered its securities, ending its obligation to file reports with the SEC.
Written from the 6 story beats below (2013 to 17 July 2017), which come from the company's own announcements and filings.