Besra Gold has announced that the Sarawak Government has conditionally approved the renewal of mining lease ML 05/2012/1D, which covers the Jugan deposit within the Bau Gold Project in East Malaysia.
The formal conditions for the renewal are yet to be provided, said the Canadian gold mining company.
The renewal ensures continuity of tenure over an area that is central to the company's regional operations in Sarawak.
The Bau property, a brownfield project, spans a vast geographic region where Besra collaborates in a consortium with a Malaysian company that holds significant Bumiputra, or indigenous Malay, interests.
This consortium has rights to mining tenements covering much of the historic goldfield.
Besra controls a 98.5% interest in the Bau Gold Project, which adjusts to 93.8% on an equity basis. Historically, the Bau site is said to have yielded more than three million ounces (moz) of gold.
The lease's renewal marks a crucial step in maintaining security of tenure for Besra, addressing a significant risk highlighted by the company's board regarding its plans for the Bau Gold Project.
Besra intends to continue engaging with local authorities to formalise and clarify the conditions related to the lease's renewal.
The company is also working on aligning regulatory requirements with its project planning activities and addressing other pending lease applications within the Bau Gold Project.
There are currently no guarantees about the outcome or timing of these additional applications.
Besra said that the Sarawak Government's decision signals recognition of the company’s commitment to its technical, environmental and stakeholder engagement efforts within the Jugan deposit area.
The company said that it will persist in its efforts to reduce regulatory and operational risks, ensuring compliance with relevant environmental and market standards.
Besra non-executive chairman John Blake said: “The renewal of ML 05/2012/1D represents a significant milestone for Besra. Security of tenure reduces project risk and is fundamental to progressing towards commercial development at Bau.
“With this renewal in place, we can now allocate resources to systematic, technically driven assessments across the Bau corridor to advance our portfolio in a disciplined and responsible way.
“We appreciate the Sarawak Government’s positive engagement and look forward to continued constructive dialogue on the remaining renewal applications. The governance and stakeholder engagement measures introduced by the board in December 2025 are delivering positive outcomes and achieving their strategic intent.”
