Agreement to Sell IBP coal concession reached
In consideration of KLG's work, the IBP selling shareholders will pay KLG US$1.37 million as to US$1 million upon completion of the SPA (projected to take place in April 2010) with the balance payable within 12 months of the first payment. In addition, KLG would be entitled to a production royalty of US$ 0.40 per tonne of coal produced from the Coal Project.
KLG will assist DCL in its due diligence, negotiations of off-take arrangements and planning mine development for which DCL will pay KLG fees of US$4.766 million, payable as to US$0.5 million upon satisfactory intermediate due diligence reporting after six weeks from due diligence commencement (projected to commence by early January 2010); a further US$2.2 million payable upon DCL signing the SPA; and US$2.066 million upon the commencement of mining of coal from the Coal Project. In addition DCL will pay KLG a production royalty of US$ 0.10 per tonne of coal produced from the Coal Project.
Commenting on the arrangement, Rahman Connelly CEO, said "Subject to completion by the parties, KLG will receive total cash payments of US$6.136 million and production royalties of US $0.50 per tonne. Given DCL's intention to commence mining during the second half of 2010, scaling up to production of 10 million tonnes annually, the most significant benefit to KLG will be the royalties of US$ 0.50 per tonne."
KLG's Coal Division is sourcing new coal areas to upgrade through drilling, with the objective of earning a share of the sale proceeds (as with IBP) or to earn an equity interest in the project.
The Coal Project
The Coal Project is already permitted for production and has the potential to be an open-cut coal mine. KLG completed a 4600m drilling program on the concession that indicates a potential deposit of 270 MTs of between 4,894 and 5,376 kcal/kg coal (air dried basis), with low ash and low sulfur content (see KLG press release dated March 26, 2009).
About Daun Consulting Limited (DCL) Singapore
DCL is a Business/Finance Consultancy, headed by Bryan Yap, former Citibank and Deutsche Bank Executive. DCL is the organizer of a Coal Investment Entity targeting US$200 million investment, owning a portfolio of coal mines with 300-500 million ton reserves and producing 15-20 million ton/year in Indonesia. DCL targets strategic investors/coal consumers/ power plants; mine owners and financial investors in High Yielding Asset Backed investments. Further information may be obtained through .
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 or contact:
Rahman Connelly
Chief Executive Officer
+61 418116955
Gerald Cheyne
Corporate Development
+44 (0) 207 731 1806
Nick Cottam
Public Relations
+ 44 (0) 1394 384115
Alexander David Securities Limited
Bill Sharp/ David Scott
+44 (0) 20 7448 9820
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.
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: .
Kalimantan's Third Quarter Report
The highlights of the third quarter and up to November 25, 2009 include:
- KSK CoW: airborne magnetic data re-processed using advanced inversion techniques identified multiple buried magnetic bodies that are coincident with surface geochemistry, geology and previous drilling results confirming the potential for major porphyry copper deposits within the KSK CoW.
- Jelai Gold project: in recent months four companies have completed comprehensive reviews of the project and advanced negotiations are underway with one potential partner
- IBP Coal project: advanced negotiations are in process for the sale of an 80% interest in the IBP Coal Concession
- Peter Bojtos, a director of the Company, was appointed non-executive chairman of the board upon the retirement and resignation of Murray Clapham as a director. Mr. Faldi Ismail was welcomed as a new director.
- On November 25, 2009 the Company's Broker, Alexander David Securities Limited, raised £350,000 from a private placement financing from the sale of 12,068,965 common shares at a price of £0.029 per share. Finders' fees on the private placement will be paid within TSX Venture Exchange guidelines. Subject to receipt of regulatory approval, the shares are scheduled to be issued on December 1, 2009 into the Crest system on the London Stock Exchange AIM market to settle for payment on December 14, 2009.
Rahman Connelly |
Gerald Cheyne |
Nick Cottam |
Alexander David Securities Limited |
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.
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.
KALIMANTAN GOLD CORPORATION LIMITED
See Nature of Operations - Note 1
CONSOLIDATED INTERIM BALANCE SHEETS
(a development stage company)
(In United States Dollars)
See Nature of Operations - Note 1
CONSOLIDATED INTERIM BALANCE SHEETS
(a development stage company)
(In United States Dollars)
Approved by the Board of Directors
| /s/ Faldi Ismail | /s/ Rahman Connelly |
| Faldi Ismail | Rahman Connelly |
The accompanying notes form an integral part of the consolidated financial statements
KALIMANTAN GOLD CORPORATION LIMITED
See Nature of Operations -- Note 1
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
(a development stage company)
(In United States Dollars)
See Nature of Operations -- Note 1
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
(a development stage company)
(In United States Dollars)
Approved by the Board of Directors
The accompanying notes form an integral part of the consolidated financial statements
KALIMANTAN GOLD CORPORATION LIMITED
See Nature of Operations -- Note 1
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
(a development stage company)
(In United States Dollars)
See Nature of Operations -- Note 1
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
(a development stage company)
(In United States Dollars)
Approved by the Board of Directors
The accompanying notes form an integral part of the consolidated financial statements
Kalimantan Gold completes private placement
Subject to receipt of approval by the TSX Venture Exchange (the "Exchange") the new shares are expected to be admitted to trading on AIM on 1 December 2009. The new shares will not be eligible for trading on the Exchange for four months after issue.
The Company intends to use the proceeds from the private placement to fund its ongoing gold and coal exploration programs in Indonesia, as well as general working capital purposes.
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 or contact:
Rahman Connelly |
Gerald Cheyne |
Nick Cottam |
Alexander David Securities Limited |
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.
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.
Kalimantan Gold plans private placement
Kalimantan Gold Corporation Limited plans to raise up to £350,000 from a private placement financing from the sale of up to 12,068,966 common shares at a price of C$0.05 (£0.029) per share. The private placement is subject to compliance with applicable securities laws and to receipt of regulatory approval. The Company's brokers, Alexander David Securities Limited will assist the Company in this placement.
The Company intends to use the proceeds from the private placement to fund its ongoing gold and coal exploration programs in Indonesia, as well as general working capital purposes.
Finders' fees on the private placement will be paid within TSX Venture Exchange guidelines.
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 or contact:
Rahman Connelly |
Gerald Cheyne |
Nick Cottam |
Alexander David Securities Limited |
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.
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.
Study Confirms Potential for a Major Copper Porphyry Deposit at the KSK Project
Kalimantan Gold Corporation Limited (AIM: KLG:LSE and TSX Venture Exchange in Canada: KLG:TSX.V ) is pleased to report encouraging results from the reprocessing of geophysical data from its KSK Contract of Work ("KSK CoW") by experts in Australia using advanced "inversion" processing techniques. Combined with a comprehensive review of all historic data, the inversion modeling has produced new insights as to the location of multiple buried IP and magnetic bodies, confirming the potential for major porphyry copper deposits within the KSK CoW below the level of drilling to date.
The KSK CoW is located in Central Kalimantan, Indonesia within the Central Kalimantan magmatic arc which hosts the Kelian (5.1M oz Au) and Mt Muro (2.2M oz Au) low-sulphidation gold deposits. Exploration to date has identified extensive copper porphyry style alteration and mineralization across the KSK CoW. Better drill results have included 167m @ 0.59% copper (from 4.5m) in porphyry style alteration mineralization at the Beruang Kanan prospect and 83m @ 2.6% copper, 61g/t silver and 0.22g/t gold (from 2.4m) drilled down dip in vein material at the Baroi prospect.
In January 2008 the Company commissioned Dr. Peter J. Pollard to review the exploration results and the copper potential of the KSK CoW. That report is posted in the Technical Report section on our web site at www.kalimantan.com.
Dr. Pollard has now also reviewed the results of the recent study and commented as follows: "the focus of major mining companies has shifted to exploring for deeper porphyry copper systems such as those that potentially exist within the KSK CoW. Most recent discoveries have been made by exploring deep targets near known systems (e.g. Oyu Tolgoi, Resolution, Pebble West) or exploring beneath younger cover (e.g. Spence and Gaby Sur). The sophisticated geophysical modeling used in the recent inversion study focused on deep geophysical anomalies in areas of surface geochemical anomalies and showings of mineralization. In this sense the study did not find anything "new" but the results do reaffirm the potential for significant copper mineralization within the KSK CoW."
Dr. Pollard further commented that: "The 2007 exploration program on the KSK CoW by Oxiana was focused on finding near-surface deposits by drilling shallow holes and they were not going after bigger picture targets. This study confirms that the KSK CoW has a lot of "untested potential" and Kalimantan Gold needs to bring in a partner with an excellent understanding of porphyry copper exploration to properly test the identified targets"
One priority target identified from the new study is a deeper target at the Mansur prospect where a previous drill hole, displaying strong porphyry alteration, appears to have fallen short of intercepting the top of a large magnetic body with a diameter of around 800 meters and vertical depth of 1,000 meters (see the attached 3D image). The reprocessed information provides an excellent tool for defining a program of deeper drill holes at Mansur and elsewhere on the KSK CoW.
Kalimantan Gold is actively showing the KSK CoW to a number of interested large mining companies. Testing the deeper levels of the Beruang and Mansur prospects are top priorities (5000m of drilling), while at the same time exploring the high priority porphyry target in the northern KSK CoW area.
Contract of Work Tenure
The KSK CoW is a 6th generation Contract of Work (" KSK CoW") that is now 100% held by Kalimantan Gold and is in good standing with two full years of exploration remaining on the "exploration clock". There are very few undeveloped CoW's remaining in Indonesia with such favourable conditions. There is some forestry issues over parts of the KSK CoW that will need to be addressed as part of any mining development, but Kalimantan Gold have developed an excellent relationship with the local government and community over many years of responsibly exploring in Kalimantan.
Technical Background:
Work by the Company and others have confirmed porphyry Copper-Gold-Molybdenum style mineralization and alteration at the Mansur and Beruang prospects and a high sulphidation system at Beruang Kanan. These are three of more than eight main targets identified for follow-up exploration within the KSK CoW. Grid soil samples have defined numerous copper anomalies at the Beruang prospects and at Mansur. The copper minerals, chalcopyrite, covellite and minor malachite are present as disseminations and within fracture fillings of quartz stockwork and sheeted veins. The recent inversion reprocessing of the geophysical data over the KSK CoW shows numerous magnetic anomalies coincident with copper in soil, rock chip and stream sediment anomalies. Although some of the magnetic anomalies are deep seated, they are still attractive targets given their potential size and shape.
High-sulphidation alteration and copper mineralization at the Beruang Kanan prospect are localized by structurally controlled breccia/shear zones within steeply dipping dacitic and andesitic volcanics and volcaniclastics. Surface sampling has defined a 1,100m long by 400-600m wide zone of >0.1% copper and broad spaced drilling has delineated copper mineralization to a depth of about 200m.
Although the geology, structural evolution and the hydrothermal processes at both porphyry prospects are not well understood, the interpreted data supports the possibility that the magnetic bodies may represent significant copper deposits as their locations are coincident with surface geochemistry, geology and previous drilling results.
All data, as disclosed in this press release, have been verified by the Company's Qualified Person for the KSK CoW project, Dr. Peter Pollard.
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.
The Company's immediate focus is negotiating off-take agreements for its coal opportunities as these are nearest to producing cash flow. Indonesia is a major coal producer and coal is a leading energy source, producing 80% of electricity in both China and India. KLG is also currently examining ways of bringing its Jelai gold prospect into early stage production.
For further information please visit www.kalimantan.com or contact:
Rahman Connelly
Chief Executive Officer
+61 418116955
Gerald Cheyne
Corporate Development
+44 (0) 207 731 1806
Nick Cottam
Public Relations
+ 44 (0) 1394 384115
Alexander David Securities Limited
Jon Levinson/ Nick Bealer
+44 (0) 20 7448 9826
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.
3D image of the Mansur prospect, one previous drill hole displaying strong porphyry alteration came close to intercepting the top of a magnetic body whose diameter is 800 meters and vertical depth 1,000 meters.
