In order to expand its business operations in South African region, Amalgamated Gold and Silver Inc (OTCMKTS:BCHS) decided to acquire a gold refinery company. As per the reports, it has managed successfully to acquire Mmelesi Investment and Logistics (Pty) Ltd.
A Solid Move To Expand Operations And Efficiency:
Last few months have been favoring the gold industry, which has prompted it to target new areas. There were quite a few problems at the start, but the management of AGS Inc completed the negotiations successfully. South Africa is a sought after destination for gold import and export, and Mmelesi Investment and Logistics (Pty) Ltd has the license to export, import and sell gold in the entire country.
The recent changes made in the minerals and mining act in South Africa increased the overall demand for Broad-Based Black Economic Empowerment (BBEE) ownership. In order to get a license for gold refining, one has to have a refining license. The senior management of the company has been trying its best to ensure best business practices. In case of Mmelesi Investment and Logistics (Pty) Ltd, the management team restructured and refocused the company to make sure efficient compliancy. After continuous hard work of the management, it has become possible to enhance the refining capacity of the company. Reports claim that the initial application has been lodged, and the regulatory authority finish the investigatory visit.
Refining license is the most important thing to have if any company wants to carry out its operations in South Africa. On top of this, three gold supply contracts are taking place in the same area to deliver 30-40 kg gold every week. These facts prompted Amalgamated Gold and Silver Inc to acquire Mmelesi Investment and Logistics as soon as possible and take advantage of the prevailing market conditions.