1. how will the USD 5 million for ongoing exploration be raised, and on what terms?
2. when will investors and potential farm in partners be informed about the status and terms of the renegotiated KSK CoW. Without that it will not be possible to complete the promised Preliminary Economic Assessment.
3. how is Mansur Geiger's recuperation progressing and how does that impact on KSK's ability to execute field work?
Kalimantan Gold Corporation Limited ("KLG” or the "Company") is pleased to announce the results of the independently estimated maiden Mineral Resource prepared for the Main Zone of the Beruang Kanan (“BKM”) prospect within the Company’s 100% held KSK Contract of Work project, Kalimantan, Indonesia. A Technical Report compliant with NI 43-101 will be published on Sedar within 45 days and will be available from the Company’s website.
Go to the company's official website www.kalimantan.com, then go to Investors and then go to Presentations. You will find the latest presentation. This sets out the program in admirable detail. However, the figure for cash (Canadian $ 0.7 m ) is misleading as it is as at 30 June 2014 and does not mention the current liabilities or provisions for which cash has to be set aside. I suspect that net current assets are currently below USD 300,000 and that significant fees are coming up for the two listings and transfer agents, then the annual audit fees etc. So there isn't likely to be much left for the exploration and other program costs estimated at up to USD 5 million. Also unclear is what the terms of the renegotiated KSK CoW might be and at what point management would know for sure that the extension of the Exploration period to April 2015 will actually be confirmed. Likewise the Jelai exploration license runs out at the beginning of June 2015. So not much cash and not much time. No explanation how management intend to jump these hurdles.
Resolving the KSK CoW on acceptable terms is without doubt every bit as important as attracting a new funding partner. One is consequent on the other. If the renegotiated CoW allows enough time for further exploration to hopefully prove the resource that might, with luck, suffice to encourage someone to fund the additional steps towards completing a BFS. The JV terms offered by Freeport McMoran were luxurious, to say the least. Will they return? I wouldn't bet on it. Is there something of interest for a small to medium size mining company? Maybe. Can KLG management negotiate JV terms that provide significant upside for existing and future investors? It is all in the balance right now.
Well said. I agree both parties, KLG & Indoneasian negotiating team are matured & responsible people. Once they have sorted out all the outstanding issues, they will be able to issue very positive RNS & production will follow. Those who keep faith in them would be ultimately well rewarded with their investment
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