Kalimantan Gold Closes Placement with Freeport, Share Soars 11%

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Saturday, 07 May 2011 08:41

Theindonesiatoday.com - The stock of Kalimantan Gold Corporation closed 11.11% higher Friday (May 6) on TSX Venture following closing of private placement of 2.5 million shares to a subsidiary of Freeport McMoRan.

The stock ended at C$0.1 but with thin volume of 37,233 shares exchanged hands. Kalimantan Gold raised C$350,000 from the placement of 2.5 million shares at C$0.14 per share.

"The company intends to use the proceeds to fund its ongoing projects in Indonesia, as well as general working capital," Kalimantan Gold said.

The company and Freeport entered into a Joint Venture Agreement in relation to the Company's KSK Contract of Work copper project in Kalimantan, Indonesia as announced on April 19, 2011. Pursuant to the joint venture agreement the private placement was priced at 125% of the volume weighted average price of the seven day period following execution of the agreement.

Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM in London. The company has two exploration projects in Kalimantan: the Jelai epithermal gold project in East Kalimantan (which has been optioned to Tigers Realm Minerals) and the KSK Contract of Work in Central Kalimantan with multiple porphyry copper and gold prospects (which has been optioned to Freeport). In addition, the Company continues as agent for the shareholders of PT Indobara Pratama (IBP) who are seeking to sell IBP's coal concession in exchange for a share of the proceeds and active negotiations with a qualified purchaser are in process. (bintang@theindonesiatoday.com)

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