Barisan Gold sells Indonesian assets
Saturday, March 11 2017 - 05:10 AM WIB
Canada?s Barisan Gold Corporation said it has 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 80 percent equity interest in each of Aceh-based mining firms PT Gayo Mineral Resources and PT Linge Mineral Resources.
The company said in a statement on Thursday that as per the terms of the CSPA, the private Indonesian company will pay Barisan a total of US$1,000,000 (equivalent to approximately C$1,300,000). Closing of the transaction is subject to final due diligence by the private Indonesian company, shareholder approval at a special general meeting (date to be announced soon), a number of regulatory approvals in Indonesia and TSX Venture Exchange approval.
The statement did not disclose the identity of the Indonesian company.
Barisan said the transaction is expected to close during the second calendar quarter of 2017. The proceeds will be used to finance the previously announced Lithium projects and to review other opportunities in technology metals. A finders' fee of $100,000 is to be paid to an arm's length company in association with the transaction.
In light of the above-mentioned sale, Barisan said it has revised its plans for the previously announced non-brokered private placement to a post consolidated (1 for 5) price of $0.10 per unit to raise gross proceeds of up to $500,000. Each unit will consist of one common share of the company and one non-transferable share purchase warrant. Each whole share purchase warrant shall be exercisable to acquire one additional common share of the company for a period of 24 months at a post consolidated (1 for 5) price of $0.15 per share purchase warrant.
The company said it intends to use the proceeds from the private placement to finance exploration on the Railroad Valley Lithium brine property, and the Black Canyon Lithium clay property, as well as general administrative purposes. The private placement is subject to acceptance by the TSX Venture Exchange. All the securities issued under the private placement are subject to resale restrictions under applicable securities legislation.
The offering will be non-brokered; however, the company said may pay finders' fees in accordance with the rules and policies of the TSX Venture Exchange.
Editing by Reiner Simanjuntak