Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

April 16, 2009 02:00 ET

Kalimantan Gold Announces Completion of Enlarged Private Placement and Debt Settlement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 16, 2009) - Kalimantan Gold Corporation Limited (the "Company") (TSX VENTURE:KLG)(AIM:KLG) is pleased to announce that, assisted by Alexander David Securities Ltd., it has received subscriptions to purchase 13,799,080 common shares at a price of C$0.05 per share raising gross proceeds of C$789,954. As a result it has decided to increase the total non-brokered private placement announced on March 13, 2009, of up to 10,000,000 common shares at a price of $0.05 per share to 15,799,080 common shares at a price of $0.05 per share.

In addition, to ensure that the proceeds of the private placing will be utilized in developing the coal deals the Company has under negotiation, the Company is pleased to announce that it has received verbal acceptances and proposes to issue approximately 6.4 million shares at a price of $0.05 per share in respect of liabilities accrued to March 31, 2009 for deferred salaries, fees and expenses to its officers, directors and senior employees and other debtors.

The private placement and debt settlement with common shares is subject to compliance with applicable securities laws and to receipt of regulatory approval. Finders' fees on the private placement will be paid within TSX Venture Exchange guidelines.

Commenting on the outcome, Rahman Connelly, CEO, said, "The outcome of the private placement provides us with the funding needed to conclude negotiations on the IBP project discussed in the Company's March 26, 2009 press release and possibly a second coal transaction which is also under negotiation."

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

About Kalimantan Gold

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 is active on gold, coal and copper prospects in Indonesia and has exploration rights in three areas: the Jelai epithermal gold prospect in East Kalimantan, an option over the IBP coal prospect, 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
    Deputy Chairman and CEO
    +61 7 552 32298 or Mobile: +61 418 116 955
    Email: rconnelly@ozemail.com.au
    Kalimantan Gold Corporation Limited
    Gerald Cheyne
    Director Corporate Development
    +44 (0) 2077311806 or Mobile: +44 (0) 7717473168
    Email: gerald.cheyne@kalimantan.com
    Kalimantan Gold Corporation Limited
    Nick Cottam
    Corporate Relations Manager
    +44 (0) 1394 384115
    Email: nick@nickcottam.com