Asiamet Resources Limited Regulatory News (ARS)

29 Aug 2013 07:00

Kalimantan Gold’s Half-Year Results 2013

The unaudited Interim Consolidated Financial Statements and the management discussion and analysis (the “MD&A”) of Kalimantan Gold Corporation Limited (the “Company” or “KLG”) for the half-year ended June 30, 2013, are available for viewing on www.sedar.com or www.kalimantan.com.

The Company incurred a comprehensive profit for the six months ended June 30, 2013, of $113,467 (2012 – loss of $215,575). The profit derived from the $469,116 management fees earned in the six month period that relate to being the operator of the KSK Agreement and are directly correlated with the magnitude of the gross exploration expenditures funded by our joint venture partners and our continuance as operator.

SK LLC funded a total of $10,481,530 of KSK CoW exploration expenses in the half-year ended June 30, 3013.

The Company began the current fiscal year with $3,058,382 in cash. Operating activities used $1,382,005 in cash; investing activities used $360,310 to purchase equipment, provided $104,969 as recovery of equipment purchases from a joint venture partner, and used $859 on settling the provision for employee service entitlements; financing activities had no cash effects in the period; and recorded $5,036 of unrealized foreign exchange loss on cash balances, to end the period with $1,425,213 in cash, of which $597,710 is held exclusively for use pursuant to the KSK Agreement.

The Company has two principal areas of interest: the KSK Contract of Work (the “KSK CoW”) in Central Kalimantan with multiple porphyry copper and gold prospects and the Jelai epithermal gold prospect in East Kalimantan.

The holder of the KSK CoW is PT Kalimantan Surya Kencana (“KSK”). Kalimantan Gold holds 100% of the shares of Indokal subject to SK LLC’s rights described below. KSK is owned 75% by Indokal and 25% by PCK. Indokal owns 100% of PCK. The KSK CoW was granted April 28, 1997 between the Republic of Indonesia and KSK as a 6th generation CoW. The terms of the KSK CoW defines several periods under which work done the KSK CoW will fall. The KSK CoW is now confirmed as being in the Exploration Period until April 28, 2014. The Ministry of Mines governs the KSK CoW on behalf of the government and they have the ability to extend any period of the KSK CoW beyond what is defined. The Company is in discussion with the government to extend the Exploration Period for a further one year term beyond April 28, 2014 and feels confident it will be successful. The period following Exploration is the Feasibility Study Period which runs for not less than two years, is extendable, and provides time to complete studies and identify the mining area.

On April 18, 2011, the Company entered into a joint venture agreement (the “KSK Agreement”) with Surya Kencana LLC (“SK LLC”), a wholly-owned subsidiary of Freeport-McMoRan Exploration Corporation in relation to the KSK CoW. On October 11, 2012, SK LLC delivered notice that it had expended $7,000,000 pursuant to the KSK Agreement thus earning a 51% interest in Indokal. On October 15, 2012 SK LLC delivered notice of its election to continue to sole fund to completion of a feasibility study. If SK LLC terminates the KSK Agreement prior to completion of a feasibility study it forfeits its rights to the 51% interest earned in Indokal being beneficially held for its account by the Company.

The holder of the Jelai Izin Usaha Pertambangan (“IUP”) is PT Jelai Cahaya Minerals (“JCM”). A wholly-owned subsidiary of the Company, KLG Singapore Private Limited (“KLG SING”) holds 99.3% of the shares of JCM. The remaining 0.7% continues to be held for the benefit of Kalimantan Gold by the same two nominee shareholders who previously held 100% of JCM.

On August 22, 2013, KLG announced the latest drill and assay results from holes drilled at the Beruang Kanan, Mamuring, Low Zone and Bukit Dea projects located on the KSK CoW together with the commencement of an airborne magnetic and gravity gradiometer survey.

BK057-01 returned 60.50 meters @ 0.65% Cu, from 7.7 meters

BK058-01 returned 64.9 meters @ 1.24% Cu, from 2.30 meters

-Ends-

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 has two exploration projects in Kalimantan: the Jelai epithermal gold project in East Kalimantan and the KSK Contract of Work in Central Kalimantan with potential for multiple porphyry copper and gold prospects. For further information please visit www.kalimantan.com

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.

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

KALIMANTAN GOLD CORPORATION LIMITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(unaudited – expressed in United States dollars)

KALIMANTAN GOLD CORPORATION LIMITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS

(unaudited – expressed in United States dollars)

KALIMANTAN GOLD CORPORATION LIMITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(unaudited – expressed in United States dollars)

KALIMANTAN GOLD CORPORATION LIMITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(unaudited – expressed in United States dollars)

Copyright Business Wire 2013