Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

December 23, 2010 02:00 ET

Kalimantan Gold Confirms Commitments to Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 23, 2010) - Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) ("Kalimantan Gold" or the "Company") confirms that it has received commitments from investors for 16,125,000 common shares at a price of C$0.08 or £0.05 per share to raise C$1,290,000 under its previously announced private placement financing.

The participating investors include clients of the Company's UK broker, Alexander David Securities Limited, along with other investors from Australia and Asia.

The placement shares will be fully paid and will rank pari passu in all respects with the existing common shares in the Company. Application has been made for the placement shares to be admitted to trading on AIM ("Admission") and to be listed on the TSX Venture Exchange. It is expected that Admission will become effective and that dealings in the placement shares will commence on 24 December 2010. Regulatory approval for the placement has also been received from the TSX Venture Exchange. The total number of common shares in issue following completion of the placement will be 162,907,156.

Rahman Connelly, the CEO of the Company commented: "We are delighted with the interest in this placement, as it allows us to further progress our projects in Kalimantan, Indonesia. With a planned drill program on the Jelai epithermal gold project funded by Tigers Realm, our new project joint venture partner, along with the expected drill testing of the significant copper porphyry targets on our KSK Contract of Work and renewed interest in the IBP coal project, 2011 will be an exciting year for Kalimantan Gold shareholders."

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.

For further information please visit www.kalimantan.com.

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