VANCOUVER, BC / ACCESSWIRE / March 9, 2017 / Barisan Gold Corporation (BG.V) (OTC PINK: BRSGF) (the "Company") has entered into a Conditional Sales and Purchase Agreement ("CSPA") with a private Indonesian company whereby the private Indonesian company has agreed to purchase Barisan Gold's 80% equity interest in each of PT Gayo Mineral Resources and PT Linge Mineral Resources.
As per the terms of the CSPA, the private Indonesian company will pay the Company a total of US$1,000,000 (equivalent to approximately $1,300,000 Canadian dollars). Closing of the transaction is subject to final due diligence by the private Indonesian company, shareholder approval at a special general meeting (date to be announced soon), a number of regulatory approvals in Indonesia and TSX Venture Exchange approval. The transaction is expected to close during the second calendar quarter of 2017. The proceeds will be used to finance the previously announced Lithium projects and to review other opportunities in technology metals. A finders' fee of $100,000 is to be paid to an arm's length company in association with the transaction.
In light of the above-mentioned sale, the Company has revised its plans for the previously announced non-brokered private placement (see September 8th, 2016 News Release) to a post consolidated (1 for 5) price of $0.10 per unit to raise gross proceeds of up to $500,000. Each unit will consist of one common share of the Company and one non-transferable share purchase warrant. Each whole share purchase warrant shall be exercisable to acquire one additional common share of the Company for a period of 24 months at a post consolidated (1 for 5) price of $0.15 per share purchase warrant.
The Company intends to use the proceeds from the private placement to finance exploration on the Railroad Valley Lithium brine property, and the Black Canyon Lithium clay property, as well as general administrative purposes. The private placement is subject to acceptance by the TSX Venture Exchange. All the securities issued under the private placement are subject to resale restrictions under applicable securities legislation.
The offering will be non-brokered; however, the Company may pay finders' fees in accordance with the rules and policies of the TSX Venture Exchange.
Neither 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.
FOR FURTHER INFORMATION, visit the Company's website at www.barisangold.com, or contact the company at:
Vancouver T: +1 604 365 6681
Caution Regarding Forward Looking Statements
Certain statements in this News Release, which are not historical in nature, constitute "forward looking statements" within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning future work programs at the Company's Upper Tengkereng Porphyry prospect, results and timing of any work programs, the Company's performance or events as of the date hereof. These statements reflect management's current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; and general market and mining exploration risks. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.
SOURCE: Barisan Gold Corporation