Barisan Gold Corporation will sell its 80% equity interest in each of its Indonesian subsidiaries PT Gayo Mineral Resources and PT Linge Mineral Resources via a conditional sale and purchase agreement (CSPA) with a private Indonesian company.
The company said that the sale proceeds would be used to finance its lithium projects in the USA and to review other opportunities in technology metals.
As per the terms of the CSPA, the private Indonesian company will pay Barisan a total of US$1 million, which is equivalent to approximately $1.3 million Canadian dollars).
Closing of the transaction is subject to final due diligence by the private Indonesian company, shareholder approval at a special general meeting, 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 in Nevada and the Black Canyon Lithium clay property in Arizona, 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.