Sep 01, 2011
Barisan Gold Provides Update On Activities
This release is not for publication or distribution in the United States
VANCOUVER, B.C. - September 1, 2011 - Barisan Gold Corporation (TSXV-BG) is pleased to provide shareholders with an update on its activities. Barisan Gold was recently spun-out from East Asia Minerals Corporation (TSXV-EAS) and is currently conducting a 1-for-1 rights issue to eligible shareholders of East Asia Minerals of record as at July 21, 2011.
Barisan Project (80% owned and operated by Barisan Gold)
Barisan Gold recently completed an airborne geological survey on parts of the Barisan Project tenement area (see Figure 1 below), which has both reconfirmed the location of the previously identified copper-gold porphyry prospects as well as identified 25 new prospects within the tenement area. The new prospects are distinguished by displaying similar features to areas known to host porphyry mineralization with the Barisan tenement area. First pass reconnaissance of these 25 new prospects is underway with the collection of a number of samples. The objective of this work is to identify drill targets within the next few weeks.
Figure 1 - Barisan target areas analytical signature airborne geological survey
(also refer to www.barisangold.com/s/barisan.asp)
Due to the success of the airborne geological survey, Barisan Gold will be conducting a second airborne geological survey over a larger part of the tenement package area at Barisan. This is expected to occur before the end of the year assuming all permits are granted by the local authorities. The completion of the second airborne geophysical survey is expected to give coverage over a district corridor with the dimensions of 50 x 15 kilometers. Porphyry style mineralisation/alteration has already been identified in the area that is yet to be surveyed and, similar to the first survey, the second survey will identify any blind targets. On the ground, early stage exploration activities is underway in the areas to be covered by this second survey. This work includes alteration mapping, rock chip, soil, stream and channel sampling. From this work 6 targets have already been identified (refer to Figure 2 below).
Figure 2 - Barisan targets for second airborne geological survey
Barisan Gold is also expecting to receive the previously ordered YDX 1800 drill rig from IndoDrill by early November allowing for drilling activities to resume onsite (drill rig with depth capacity of 1,800 meters). The location of the first drill hole has yet to be determined as the company continues to analyze data from the airborne geological survey, exploration work completed over the past few months, site access and logistic avenues.
Barisan Gold Rights Issue
Barisan Gold wishes to remind shareholders that they have until September 16, 2011 to exercise their rights in conjunction with the rights issue. In order to exercise their rights, rightholders must complete the exercise form, which forms part of the rights certificate. Rightholders who have not received the exercise form should contact their brokers immediately. Shareholders who are not resident in Canada or other eligible jurisdictions or are otherwise qualified ARE NOT eligible to participate in the rights offering. For details, please refer to the prospectus filed on SEDAR on August 9, 2011 (the "Prospectus").
The rights issue is expected to raise approximately C$11.2 million and is fully backstopped by CEF Holdings Ltd. Proceeds from the rights issue will be used to advance exploration at the company's Barisan gold-copper porphyry belt project as well as for general corporate purposes. Shareholders should consult the Barisan Gold Prospectus for details on the rights issue.
As a result of the East Asia Minerals dividend, Barisan Gold currently has 20,353,093 shares and 20,353,093 rights outstanding. Based on the closing share price of the common shares of Barisan Gold of C$0.49 as of yesterday on the Toronto Venture Exchange, the current market capitalization of Barisan Gold is C$10 million. Following the completion of the rights issue price, Barisan Gold will have approximately C$11.5 million of cash in the treasury.
Barisan Gold Participating in North American Conference
Barisan Gold's senior management team will be in North America during the first two weeks of September and will be participating in the Toronto Resource Investment Conference (September 15-16, 2011 in Toronto) with East Asia Minerals Corporation.
Darryl Clark, P. Geo, the designated QP within the meaning of NI 43-101, has reviewed and approved the content of this release.
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.
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FOR FURTHER INFORMATION, visit the Company's website at www.barisangold.com, or contact:
Kristy Reynolds, Investor Relations
T: +1 604 684 2183
About Barisan Gold Corporation
Barisan Gold (BG-TSXV) is a Canadian-based minerals exploration company listed on the TSX Venture Exchange under the symbol "BG". The Company is engaged in the exploration, acquisition and development of mineral properties in Indonesia. Barisan Gold currently owns and operates three gold and gold-copper properties in Indonesia's Aceh Province on the northern tip of Sumatra Island, namely the Barisan gold-copper porphyry belt, the Abong epithermal gold project and the Takengon gold-copper porphyry prospect. Barisan Gold currently has 20,353,093 shares outstanding.
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. When used in this News Release, such statements use words such as "may", "will", "expect", "intend", "anticipate" and other similar terms. These statements reflect management's current assumptions and expectations regarding future results, performance or events as of the date hereof 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. Forward looking statements involve significant risks and uncertainties and should not be read as guarantees of future or performance results. Accordingly, readers should not place undue reliance on any forward looking statement.
Forward looking statements in this News Release include, among other things, statements regarding the proposed internal reorganization, dividend-in-kind and rights offerings, and the proposed terms, conditions, structure and consequences thereof to the Company and its security holders; the timing and receipt of approvals and consents; future exploration activities; and the adequacy of financial resources, among others.
Forward looking statements are based on assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made. The Company believes that the assumptions and expectations reflected in such forward looking statements are reasonable. Assumptions have been made regarding, among other things, the Company's ability to reorganize its properties and interests to permit it to carry out the proposed transactions in an effective and reasonable manner; the Company's future exploration and development activities; timely receipt of third party or regulatory approvals; and the Company's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used and that these factors and assumptions may be incomplete or incorrect.
Forward looking statements are also subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward looking information. Those risks include the interpretation of drill results and the estimation of mineral resources and reserves; 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, permitting and licensing risks; and general market and mining exploration risks.
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. 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.
Investment in the common shares of the Company involves substantial risk. Please refer to the Prospectus, in particular, the section with the heading "Risk Factors".
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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