Kalimantan Gold to raise funds by private placement
Saturday, October 16 2004 - 01:36 AM WIB
Canadian mining firm Kalimantan Gold Corporation Limited said Friday it was arranging a non-brokered private placement to raise up to C$500,000 (about US$400,000) to fund its ongoing drilling program at Baroi porphyry copper-gold target in Central Kalimantan.
Kalimantan Gold said the additional funds, together with funds on hand, were required to take the drilling program into deeper depth levels of up to 800 meters from the previous planned of up to 300 meters to provide evidence that a significant porphyry copper-gold deposit could exist.
?Significant drill intersections will make continued exploration more financeable by Kalimantan Gold either by way of equity financing or a strategic alliance with a major mining company,? it said in a statement.
The company added that aside from funding the drilling program, it would use part of proceeds from the sale of up to 1,428,571 shares at C$0.35 per share for working capital. (Robert)