Kalimantan Gold to proceed with private placement, debt to equity swap

Mining firm listed in Canadian Venture Exchange (CDNX) Kalimantan Gold Corporation Limited is proceeding with a non-brokered private placement financing of up to US500, 000, according to the company?s release Monday.

The company said the private placement would consist of up to 2,500,000 common shares at a price of US$0.20 per share with Kalimantan Investment Corporation, the company's major shareholder and other individuals as takers.

According to the company?s president Tim Scott, the proceeds of the placement will be used, together with funds on hand, to finance the Company's ongoing exploration program in Kalimantan and for working capital.

The release also said that Kalimantan Gold had reached an agreement with P.T. S. Widjojo, an Indonesian company, to issue 351,450 common shares of the company at a deemed price of US$0.20 per share to fully extinguish US$70,290 of debt to the latter.

Kalimantan Gold, a Bermuda corporation, is a junior mineral exploration company involved in the acquisition and exploration of mineral properties in Kalimantan. (alex)