Kalimantan Gold plans private placement financing

Canadian mineral explorer Kalimantan Gold Corporation Limited plans to raise C$1.5 million from the sale of up to 7,500,000 units at a price of $0.20 per unit from a non-brokered private placement financing, the company announced Friday.

The proceeds, according to the company, will be used to fund drilling at Baroi, follow up exploration at the Liang Bulau in Central Kalimantan and working capital.

The company said in recent month, its C. Kalimantan tenement has attracted significantly increased interest from major mining companies with the possibility of forming joint venture.

Kalimantan Gold has a 75% interest in the 124,200 hectare KSK Contract of Work located in Central Kalimantan. Baroi and Liang Bulau are two of 38 prospects identified within the KSK CoW and are currently the main exploration focus of the Company.(alex)