Busang troubles stop Bre-X releasing year-end results

Busang troubles stop Bre-X releasing year-end results

TORONTO (Reuter): Bre-X Minerals Ltd said on Tuesday its recent troubles have delayed the release of year-end financial results for the gold prospector and its sister companies.

Calgary-based Bre-X said it also planned to reduce its Indonesian workforce as it winds down operations in the country.

"As a result of the interim Strathcona Mineral Services Ltd. report's opinion that a fraud has occurred at the Busang site we are unable to produce year-end financial statements at this time," Bre-X said in a statement.

Audited financial statements for Bresea Resources Ltd and Bro- X Minerals Ltd will not be issued at this time as well.

The three companies have been advised by securities regulators that they will be subject to cease trade orders for failing to file statements within 140 days from the corporations' year ends, Bre-X said.

"It is our intention to have audited financial statements completed at the earliest opportunity," said David Walsh, chairman of the three companies.

But Walsh added it could be months before the results are completed.

Bre-X and its sister companies have filed for creditor protection in the wake of the Strathcona report and scaled back their activities in Canada and Indonesia.

The company has filed a fraud complaint with the Royal Canadian Mounted Police and said on Tuesday it would file a similar complaint with Indonesian authorities.

"These most unfortunate circumstances have necessitated that the Bre-X Group of Companies take the necessary steps required to reduce our Indonesian workforce," Bre-X said.

The company said it is discussing compensation with employee representatives and the Indonesian Ministry of Manpowerr. Bre-X has over 400 employees in Indonesia.