Kalimantan Gold to raise fund for exploration

Bermuda-based exploration firm Kalimantan Gold Corporation Limited announced Thursday it would proceed with its private placement plan to raise US$200,000 to finance its ongoing exploration and drilling programs in Central Kalimantan.

The company, which is listed on the Canadian Stock Exchange, is exploring for copper and gold in the area.

It said in a statement made available to Petromindo.com that insiders of the company and other long-term individual supporters of the company will take up the shares.

But, it did not reveal the amount of shares offered through the private placement scheme.

It said the funds to be raised through the private placement scheme would be used for further exploration at Beruang Kanan area at the headwaters of the Upper Kahayan River.

It said its decision to conduct further exploration in the area was supported by an independent report indicating copper prospect in the area.

"The discovery of wide spread copper mineralization in the Beruang Kanan area was made by a combination of geology, stream geochemistry and later with soil geochemistry, geophysics and diamond drilling.

"The recognition that the wide spread copper mineralization had a porphyry copper potential was the key to the potential success of the project," the company quoted the independent report as saying.

Kalimantan Gold, through its wholly owned subsidiary Indokal, owns 75 percent of the issued and outstanding shares in PT Kalimantan Surya Kencana (KSK) which held a sixth generation Contract of Work (CoW) in Central Kalimantan.

Aside from the sixth generation CoW, it also held a fourth generation CoW in the area.

On August 16, 1999, the government combined both CoWs into one CoW, 75 percent owned by Kalimantan Gold, covering 124,200 hectares of land. (alex)