Kalimantan Gold provides Q1 highlights of performance results
Thursday, June 3 2010 - 12:55 PM WIB
The highlights of the first quarter and up to May 28, 2010 include:
Indobara Pratama coal (IBP) Coal project:
Negotiations on a sale agreement with one of interested party are at an advanced stage and the Company is continuing to receive expressions of interest in the project.
The contract price of thermal coal has increased by approximately 40% in the past year. In light of this and the interest shown in IBP, the Directors remain confident that a sale of the coal concession of IBP can be completed on terms satisfactory to the shareholders of IBP and the Company.
IBP is already permitted for production and has the potential to be an open-cut coal mine. The Company completed a 4600m drilling programme on the concession that indicates a potential deposit of 270 MTs of between 4,894 and 5,376 kcal/kg coal (air dried basis), with low ash and low sulfur content (see KLG press release dated March 26, 2009).
Kalimantan Surya Kencana (KSK) CoW Copper project:
Following the announcement on 11 November, 2009 of the results of the advanced "inversion" processing on the KSK CoW, the Company has been approached by three major mining companies. None of these companies had previously been aware of the KSK CoW copper project. Each of these major mining companies has since undertaken extensive data reviews and site visits and two remain in discussions with the Company. The Company is hopeful that an agreement can be reached that will see extensive drilling of the massive magnetic bodies identified below existing drill holes, which have the potential to yield major porphyry copper deposits.
In conjunction with these discussions, the Directors are also considering the possibility of attracting minority investment at the project level to fund the drilling of up to four priority targets identified by the "inversion" study, thereby enabling the Company to retain control of the project at this stage.
Private Placement
On April 22, 2010 the Company announced its plans to raise up to C$1,000,000 from a non-brokered private placement financing from the sale of up to 20,000,000 common shares at a price of C$0.05 per share. The private placement is subject to compliance with applicable securities laws and to receipt of regulatory approval. The Company may pay finder's fees up to TSX Venture Exchange allowable limits. The private placement is expected to close by June 7, 2010 and to date the Company has received subscriptions for in excess of C$550,000.
The Company is seeking approval from its shareholders at a meeting to be held June 18, 2010 to increase its authorized share capital from 200,000,000 to 500,000,000 common shares at a par value of $0.01 or $2,000,000 to $5,000,000 authorized share capital.
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. (end of edited highlights)