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Kalimantan Gold Plans Private Placement
Kalimantan Gold Corporation Limited ("KLG" or the "Company") is
pleased to announce that it plans to undertake a brokered private
placement to place up to 55,000,000 common shares at a price of
GBP0.0127 or US$0.020 per share (CDN $0.023) for total gross
proceeds of up to US$1,100,000 (CDN $1,265,000). The private
placement is not subject to a minimum subscription amount by any
individual investor.
The private placement is subject to compliance with applicable
securities laws and to the receipt of regulatory approval. Insiders
may participate in the private placement and the Company will pay
broker fees in connection with the private placement in accordance
with the policies of the TSX Venture Exchange. The private
placement will not be conducted in North America and the shares
placed will be settled through CREST and as such the TSX Venture
Exchange has granted a discretionary waiver to its minimum pricing
rules.
The Company is also pleased to provide an update to the
announcement of 26 November, 2014 that it had signed a non-binding
letter of intent ("LOI") with Tigers Realm Copper Pty Ltd
("Tigers") to purchase its interest in the Beutong copper-gold
project, Sumatra, Indonesia.
-- The Company has today executed a Definitive Agreement with Tigers and
Tigers Copper Singapore No.1 Pte Ltd (the "Agreement")
-- The Agreement sets out a number of conditions required to complete the
transaction including but not limited to:
KLG completing an equity placement of not less than US$1
million
which amount has been reduced from the previously announced
US$3
million minimum. This condition will be satisfied if the
current
placement, the subject of this announcement, is subscribed for
not
less than US$1 million.
The receipt of applicable regulatory approvals. The Company
has
received conditional approval from the TSX Venture Exchange and
is
making its submissions for final approval to close the
acquisition.
The ultimate parent of Tigers being Tigers Realm Metals Pty
Ltd
("TRM Parent") receiving shareholder approval for the
distribution
of the Consideration Shares by it to the TRM Parent
shareholders.
This approval has been received.
Faldi Ismail, the current Deputy Chairman and CEO of KLG stated,
"Excellent progress has been made since the signing of the LOI and
we look forward to bringing together the combination of
complementary projects and people upon which to continue to build a
significant regional Asian focused copper-gold business". The
Company intends to use the proceeds from the private placement
primarily to fund the preparation and commencement of the Company's
next phase of infill and expansion drilling at KLG's Beruang Kanan
prospect within the Company's KSK Contract of Work in Kalimantan,
on finalizing conversion of the Beutong Izin Usaha Pertambangan
("IUP") from an exploration IUP to an exploitation IUP and for
general working capital purposes.
A presentation outlining the transaction and the combined
projects is available on the Company's website.
ON BEHALF OF THE BOARD OF DIRECTORS
Faldi Ismail, Deputy Chairman and CEO
For further information please contact:
-Ends-
Faldi IsmailDeputy Chairman and CEO, Kalimantan GoldMobile: +61
(0) 423 206 324Email: faldi.ismail@kalimantan.com
Gerald CheyneDirector Corporate DevelopmentTelephone: +44 (0)
2077311806Mobile: +44 (0) 7717473168Email:
gerald.cheyne@kalimantan.com
VSA Capital LimitedAndrew Raca / Justin McKeeganTelephone: +44
20 3005 5004 / +44 20 3005 5009Email: araca@vsacapital.com
Kalimantan Gold's Nominated AdviserRFC Ambrian LimitedAndrew
Thomson / Trinity McIntyreTelephone: +61 8 9480 2500Email:
andrew.thomson@rfcambrian.com / trinity.mcintyre@rfcambrian.com
About Kalimantan Gold Corporation Limited
Kalimantan Gold Corporation Limited is a junior exploration
company listed on both the TSX Venture Exchange in Canada and on
AIM in London. The Company has two exploration projects in
Kalimantan, Indonesia: the Jelai epithermal gold project in East
Kalimantan and the KSK Contract of Work in Central Kalimantan with
potential for multiple porphyry copper and gold prospects. For
further information please visit www.kalimantan.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements.Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices.There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended.Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertainty therein.
United States Advisory
The securities referred to herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), have been offered and sold
outside the United States to eligible investors pursuant to
Regulation S promulgated under the U.S. Securities Act, and may not
be offered, sold, or resold in the United States or to, or for the
account of or benefit of, a U.S. Person (as such term is defined in
Regulation S under the United States Securities Act) unless the
securities are registered under the U.S. Securities Act, or an
exemption from the registration requirements of the U.S. Securities
Act is available. Hedging transactions involving the securities
must not be conducted unless in accordance with the U.S. Securities
Act. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy any securities, nor shall there
be any sale of securities in the state in the United States in
which such offer, solicitation or sale would be unlawful.
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