PRESS RELEASE: Kalimantan Gold raises new equity
Monday, December 18 2000 - 04:30 AM WIB
Kalimantan Gold Corporation Limited (KLG.U CDNX) shareholder Rights Offering closed on December 12, 2000 raising a total of US$715,124 of new equity at a price of US$0.20 per share issued. A total of 3,575,620 common shares were issued so that there are now a total of 19,447,494 common shares issued and outstanding.
Kalimantan Investment Corporation ("KIC"), the Company's major shareholder purchased US$500,000 of the total new equity by exercising all of the rights issued to it under the Rights Offering and subscribing for common shares not otherwise subscribed for pursuant to a standby guarantee, so that it now owns 11,789,501 common shares representing 60.6% of the issued shares of the Company. KIC's July 2000 loan advance of US$200,000 and its November 2000 loan advance of US$100,000 to the Company have been credited against KIC's US$500,000 total contribution.
The proceeds will be used to fund the Company's exploration program at the Beruang Kanan Prospect located in the southeast area of its 75% owned KSK Contract of Work in Kalimantan, Indonesia, for working capital to fund general operating expenditures and to pay the expenses of the Offering.
From August to October 2000 a broad geochemical survey was carried out over the Beruang Kanan Prospect, outlining a copper porphyry target measuring about 6.5 kilometers in diameter and open in all directions. Detailed geological mapping of the Beruang Kanan Main Zone and the West Leach Cap Zone as well as reconnaissance mapping of the recently identified West Zone is now in progress. A diamond-drilling program is scheduled to commence in late January 2001. The objectives are to test for mineralization within the 2.5 kilometers strike length of the Beruang Kanan Main Zone. Previous drilling, reported in the third quarter report of 1998 positively tested 800 meters of this strike length. The West Leach Cap Zone IP target will also be drilled to test potential mineralization at depths below 100 meters. An IP program is planned over the greater Beruang Kanan Prospect for when the monsoon rains are expected to abate in the Spring of 2001.
On Behalf of the Board of Directors "Doris Meyer", Corporate Secretary and Director. (*)