BORNEO GOLD CORPORATION - 7TH GENERATION CONTRACTS OF WORK RECOMMENDED FOR APPROVAL
Shares Issued; 28.6M
Fully Diluted: 35.5M
Working Capital (June 30, 1997) C$10.3M
Trading Symbol: VSE - BNO
JAKARTA, Indonesia, Sept. 30 /CNW/ - Borneo Gold Corporation is pleased
to report that the Legislative Council of the Republic of Indonesia has
recommended that three of the Company's 7th Generation Contract of Work (CoW)
applications, which have been agreed to in principle by the Indonesian
Government, be approved for signing by the President of the Republic of
Indonesia. Once the 7th Generation CoW's have received final Presidential
approval, which the Company presently expects to be in the late fall, the
Company will incorporate three Indonesian subsidiaries which will then each
enter into a final signed 7th Generation CoW with the Government of Indonesia.
The Company will have a 90% interest in each of these subsidiaries.
The three CoW applications recommended for approval cover the Company's
Bunut area in West Kalimantan, Tanah Laut Timur area in South Kalimantan and
the North Rumah area in Central Kalimantan. The Company has withdrawn its 7th
Generation Kahayan CoW application as work programs conducted in the Kahayan
area under a temporary exploration (``SIPP'') permit indicated the area does
not appear to be prospective for mineral deposits and did not merit further
exploration work. The Company prefers to focus its exploration spending on its
other projects which have indicated encouraging exploration potential. The
Company will also be aggressively evaluating new gold exploration projects in
Indonesia which are presently coming available from companies withdrawing from
their Indonesian programs.
Commenting on the recommendation of the 7th Generation CoW's by the
Indonesian Legislative Council Dr. Francis Manns, President and Chief
Executive Officer said ``This recommendation demonstrates that the Government
of Indonesia continues to support and encourage mineral exploration in
Indonesia by junior Canadian exploration companies. We believe the market's
concerns regarding the Indonesian Government honouring the 7th Generation
CoW's, which have been approved in principle, are misplaced and we are
confident that these CoW's will be finalised before the end of the year.''
In addition to the above 7th Generation CoW applications, Borneo Gold
Corporation has a 90% interest in a signed 6th Generation Tanah Laut CoW area
located in South Kalimantan. The Company's head office is located in Toronto,
Canada and its main operating office in Jakarta, Indonesia. The Company's
common shares trade on the Vancouver Stock Exchange under the symbol BNO.
ON BEHALF OF THE BOARD
``Francis T. Manns,'' President & CEO
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
-30-
For further information: Francis T. (Fran) Manns, President & CEO, or Robert J. Toole, CFO, Tel: (416) 867-6200, Fax; (416) 867-6236, E-mail:
toronto(at)borneo-gold.com |
