Kalimantan Gold prices private placement with Freeport

Kalimantan Gold Corporation Limited announced on Friday that a wholly owned subsidiary of Freeport-McMoRan Exploration Corporation has subscribed for the company's 2,500,000 common shares at a price of C$0.14 per common share for total proceeds of C$350,000.

The company and the Freeport subsidiary entered into a joint venture agreement to develop the copper project in Central Kalimantan, owned by the former's subsidiary Kalimantan Surya Kencana, a contract of work (CoW) holder.

Pursuant to the joint venture agreement the private placement was priced at 125% of the volume weighted average price of the seven day period following execution of the agreement.

The placement will close on the second business day following receipt of the conditional acceptance of the TSX Venture Exchange. (romel)