Barisan Gold Corp. (BG:CA) has entered into a conditional sale and purchase agreement (CSPA) with a private Indonesian company, whereby the private Indonesian company has agreed to purchase Barisan Gold’s 80-per-cent 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.
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