Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

April 22, 2010 03:00 ET

Kalimantan Gold Plans Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 22, 2010) - Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) plans to raise up to C $1,000,000 from a non-brokered private placement financing from the sale of up to 20,000,000 common shares at a price of C $0.05 per share. The private placement is subject to compliance with applicable securities laws and to receipt of regulatory approval. The Company may pay finder's fees up to TSX Venture Exchange allowable limits.

The Company intends to use the proceeds from the private placement to fund its ongoing programs in Indonesia, as well as general working capital purposes.

The IBP Coal Project

Since our update on March 17, 2010 announcing the reopening of the PT Indobara Pratama ("IBP") coal concession for expressions of interest, three companies have signed confidentiality agreements and are undertaking detailed reviews. Negotiations on a sale agreement with one of these parties are at an advanced stage and the Company is continuing to receive expressions of interest in the project.

The contract price of thermal coal has increased by approximately 40% in the past year. In light of this and the immediate interest shown in IBP, the Directors remain confident that a sale of the coal concession of IBP can be completed on terms satisfactory to the shareholders of IBP and the Company.

KSK CoW Copper Concession

Since our update on March 17, 2010 three more mining companies have signed confidentiality agreements and are proceeding with desk and field due diligence. One company that made a site earlier in the year is scheduled to return for further investigation and joint venture discussions.

The current strong interest being shown in KSK results from a study, reported 11 November 2009 in NR 2009-9, in which advanced inversion technology identified massive magnetic bodies below drilling to date, confirming KSK prospectively for major copper porphyry deposits. The Directors are confident that a joint venture partner or funding through project equity will be found in the near term to drill the high priority targets identified by the study.

About Kalimantan Gold

Kalimantan Gold is a junior exploration company listed on both the TSX Venture Exchange in Canada and on the London AIM market. The Company is active in Indonesia where it has three areas of interest: the Jelai epithermal gold prospect in East Kalimantan; coal opportunities, also in East Kalimantan and a Contract of Work in Central Kalimantan with multiple porphyry copper and gold prospects.

RFC Corporate Finance Ltd acts as KLG's Nominated Adviser for the purposes of its AIM listing, contact Stuart Laing, ph: +618 9480 2506 or email: stuartl@rfc.com.au.

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.

Contact Information

  • Kalimantan Gold Corporation Limited
    Rahman Connelly
    Chief Executive Officer
    +61 418116955
    Kalimantan Gold Corporation Limited
    Gerald Cheyne
    Corporate Development
    +44 (0) 207 731 1806
    Alexander David Securities Limited
    Bill Sharp/David Scott
    +44 (0) 20 7448 9820