Barisan Gold completes sale of Collins prospect

By Ruli Setiawan

TSX-listed Barisan Gold Corporation announced Friday that it has completed the sale of the Collins prospect as initially announced on March 4, 2013.

Barisan Gold said in a statement that it has received a cheque for Rp 7,289,517,168 (equivalent to approximately C$650,000) from an undisclosed purchaser. An initial Rp 1,000,000,000 had been held in escrow since March 2013. That amount has now also been released from escrow. The cheque is expected to be deposited in the company's bank account over the next few days following the completion of the final clerical steps.

The proceeds from the sale will be applied to advance exploration and drilling at the company's Upper Tengkereng gold-copper porphyry discovery in Indonesia?s Aceh Province.

As announced in March of last year, Barisan Gold entered into a Conditional Sales and Purchase Agreement (CSPA) with a private Indonesian company whereby the private Indonesian company has agreed to purchase Barisan Gold's 75 percent equity interest in PT Takengon Mineral Resources.

PT Takengon Mineral Resources owns the Takengon Exploration Izin Usaha Pertambangan (IUP), which includes the Collins epithermal gold prospect. PT Takengon Mineral Resources is separate from the company's two key investments, PT Gayo Mineral Resources (which contains the Barisan porphyry prospects) and PT Linge Mineral Resources (which contains the Abong epithermal gold deposit).

Editing by Reiner Simanjuntak