Barisan Gold Corporation (CVE:BG) said on Friday it is to sell an 80% equity interest in each of PT Gayo Mineral Resources and PT Linge Mineral Resources for $1mln (C$1.3mln) via a conditional sale and purchase agreement (CSPA) with a private Indonesian company.
The proceeds will be used to finance the previously announced Lithium projects and to review other opportunities in technology metals, the company said.
Closing of the private placement 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. 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 sale, the company has revised its plans for a non-brokered private placement announced last September to a post consolidated (1 for 5) price of $0.10 per unit to raise gross proceeds of up to $500,000.
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.
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 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.
Story by ProactiveInvestors