Kalimantan Gold plans private placement

By Romel S. Gurky

Vancouver-based mineral exploration firm Kalimantan Gold Corporation Limited has stated its plans to raise up to GBP ?300,000 from a non-brokered private placement financing from the sale of up to 6,000,000 common shares at a price of ?0.05 or US$0.08 per share.

The private placement is subject to compliance with applicable securities laws and to receipt of regulatory approval. Insiders may participate in the private placement and the company may pay finder's fees up to TSX Venture Exchange allowable limits.

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

Kalimantan Gold stated to have drilled more than 35,000 metres at its KSK copper project in Central Kalimantan, uncovering the potential for a world class deposit.

Since April 2011, the KSK project has been under joint venture to a subsidiary of Freeport-McMoRan Exploration Corporation. On March 12, 2012, the necessary forestry permit to begin drilling was received and drilling is expected to commence soon.

In East Kalimantan, there has been 14,500 metres of shallow drilling at its Jelai gold prospect which has the potential to yield a major epithermal deposit. On November 10, 2011, the Company announced receipt of the permit necessary to allow drilling to commence by Tigers Realm.

As announced on February 15, 2011, pursuant to an option agreement Tigers Realm has the right to earn up to a 70 percent interest in the Jelai Gold project by meeting certain project expenditure obligations and completing a bankable feasibility study by June 2, 2015, the expiry date of the Jelai IUP.

Tigers Realm's proposed drill program expenditure is US$2 million over the first 18 months with approximately 8,000 meters of drilling at the Mewet Prospect planned.

Editing by Audy Zandri