Kalimantan Gold plans $1.1m private placement

By Romel S. Gurky

TSX-listed Kalimantan Gold Corporation Limited (KLG) said it plans to undertake a brokered private placement to place up to 55,000,000 common shares at a price of ?0.0127 or US$0.020 per share (C$0.023) for total gross proceeds of up to US$1.1 million (C$1.26 million).

The private placement is not subject to a minimum subscription amount by any individual investor.

The company said in a statement Wednesday that the private placement is subject to compliance with applicable securities laws and to the receipt of regulatory approval. Insiders may participate in the private placement and the company will pay broker fees in connection with the private placement in accordance with the policies of the TSX Venture Exchange. The private placement will not be conducted in North America and the shares placed will be settled through CREST and as such the TSX Venture Exchange has granted a discretionary waiver to its minimum pricing rules.

The company also provided an update to the announcement of 26 November, 2014 that it had signed a non-binding letter of intent with Tigers Realm Copper Pty Ltd (Tigers) to purchase its interest in the Beutong copper-gold project, in Aceh Province.

1. The company on Wednesday executed a definitive agreement with Tigers and Tigers Copper Singapore No.1 Pte Ltd.

2. The agreement sets out a number of conditions required to complete the transaction including but not limited to:
- KLG completing an equity placement of not less than US$1 million which amount has been reduced from the previously announced US$3 million minimum. This condition will be satisfied if the current placement, the subject of this announcement, is subscribed for not less than US$1 million.
- The receipt of applicable regulatory approvals. The company has received conditional approval from the TSX Venture Exchange and is making its submissions for final approval to close the acquisition.
- The ultimate parent of Tigers being Tigers Realm Metals Pty Ltd (TRM parent) receiving shareholder approval for the distribution of the Consideration Shares by it to the TRM Parent shareholders. This approval has been received.

Faldi Ismail, the current Deputy Chairman and CEO of KLG stated, ?Excellent progress has been made since the signing of the LOI and we look forward to bringing together the combination of complementary projects and people upon which to continue to build a significant regional Asian focused copper-gold business?. The company intends to use the proceeds from the private placement primarily to fund the preparation and commencement of the company?s next phase of infill and expansion drilling at KLG?s Beruang Kanan prospect within the company?s KSK Contract of Work in Kalimantan, on finalizing conversion of the Beutong Izin Usaha Pertambangan (IUP) from an exploration IUP to an exploitation IUP and for general working capital purposes.

Editing by Reiner Simanjuntak