VANCOUVER (Yosefardi) – Barisan Gold Corporation has entered into a preliminary agreement with a prominent Indonesian group to jointly advance Barisan’s Indonesian properties.
Under the terms of the agreement, the Indonesian group will take an 80% equity interest in both of Barisan’s Indonesian subsidiaries, with Barisan Gold maintaining a 20% equity interest.
Barisan Gold’s 20% equity interest will be fully carried by the new partner until the issuance of a mining license at the Company’s project(s) in Indonesia. It will become the Indonesian Group’s sole responsibility to carry exploration activities, feasibility study activities and permitting activities required prior to the application and successful issuance of a mining license.
Upon the issuance of the mining license, Barisan Gold will have the option to either fund its 20% share or be further diluted to 5%, in which case its 5% equity interest will become free carried.
Barisan Gold will be raising a non-brokered private placement of approximately $500,000.
The transaction is expected to close within 90 days, subject to the satisfactory completion of the conditions in the agreement.
Barisan Gold currently owns and operates two gold and gold-copper properties in Indonesia’s Aceh Province on the northern tip of Sumatra Island, namely the Barisan gold-copper porphyry belt and the Abong epithermal gold project.