KAL Energy raises $9m to further E. Kalimantan coal exploration

London-based junior coal explorer announced on Tuesday the raising of over US$9 million to further fund and develop its business in general and specifically to support the exploration and development of its thermal coal concessions in East Kalimantan.

The company said the funds will be deployed to fund a Phase 2 Exploration program, carry out a restructuring program and remove legacy Accounts Payable from the company's balance sheet.

The Phase 2 Exploration program will remain focused on KAL Energy's Block 24 and Block 16. The focus for Block 24 is to upgrade the qualification from a JORC Inferred Resource to JORC Measured status, and to drive the technical program for mine studies & planning. The Block 16 component of the program will be early stage, with a target of establishing a JORC resource and basic economic feasibility. Plans for both components of the plan are currently being finalized, with the mobilization goal being the first fiscal quarter.

KAL Energy, Inc. has rights to two coal concessions namely Block 24 and Block 16 situated near the Mahakam River in North Eastern Kalimantan. One of the concessions has a JORC Compliant Inferred Resource of 204 Million tonnes of thermal coal. (alex)