Kalimantan Gold closes private placement
Monday, June 8 2015 - 04:19 PM WIB
AIM and TSX V-listed Kalimantan Gold Corporation Limited announced last week that it has closed a brokered private placement announced on May 28, 2015, which was aimed at raising funds for its project in Indonesia.
The company has issued and settled through CREST 108,443,747 common shares at a price of ?0.012 per share for total gross proceeds of approximately ?1.3 million (approximately equivalent to CDN $2.5 million at CDN $0.023 per share).
The company paid an aggregate of ?65,000 in fees to brokers and issued an aggregate of 5,416,667 common shares purchase warrants to brokers with each warrant exercisable at a price of C$0.05 per share for a period of two years. The participating investors include clients of the company's UK broker agents, VSA Capital Limited and Optiva Securities Limited. The common shares issued and any common shares issued on exercise of the broker warrants are restricted from trading in Canada through the TSX Venture Exchange until October 2, 2015.
It is intended that the proceeds of the private placement will be used to fund the continuation of the Company's 2015 infill and expansion drilling at the Beruang Kanan prospect within the KSK Contract of Work in Kalimantan, on progressing conversion of the company's Beutong Izin Usaha Pertambangan (IUP) from an exploration IUP to an exploitation IUP, and for general working capital purposes.
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 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 June 3, 2015. The total number of common shares in issue following completion of the placement will be 503,168,500.
Editing by Johannes Simbolon