Kalimantan gold raises fund for exploration

Junior mining firm Kalimantan Gold Corporation Limited said Wednesday it was proceeding with a non-brokered private placement financing of up to US$3,000,000. The private placement, which is subject to regulatory approval, will consist of up to 15,000,000 units at a discounted price of US$0.20 per unit.

The company said each unit will consist of one common share and one-third of one common share purchase warrant. Each whole warrant will be exercisable for the purchase of one common share at a price of US$0.23 per share for a period of two years from the date of closing.

The proceeds of this placement, together with funds on hand, to finance the Company's ongoing exploration programs on its Contract of Work in Kalimantan and for working capital, said the company.

Exploration is ongoing on the Mansur, Focus 1 and Baroi prospects and will be accelerated to the greatest extent possible depending on the amount raised by this private placement.

Kalimantan Gold explores for gold and copper in the island of Borneo. (alex)