Kalimantan Gold closes private placement with Freeport

Vancouver-based exploration firm Kalimantan Gold Corporation Limited announced Friday it has raised C$350,000 from the issue of 2,500,000 common shares to a wholly owned subsidiary of Freeport-McMoRan Exploration Corporation.

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

The company and Freeport entered into a joint venture agreement in relation to the Company's KSK Contract of Work copper project in Kalimantan.

Kalimantan Gold 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. (alex)