KCM to deliver 8,000 tons by end of July

By Peni Pedriawan

ASX-listed Palace Resources Ltd said on Friday that its KCM project would deliver 8,000 tons by the end of July 2013 as part of the off-take agreement with an independent third party.

Under this off-take / sale agreement, the vendors will receive a prepayment for 50% of the negotiated value of the coal to be delivered in the following month with the balance, including under and over provisions with respect to specifics associated with the final product, at the completion of the transaction.

The vendor has undertaken to complete the mining operations as part of the memorandum of understanding (MoU) and will commence in the area running from drill hole #2 to drill hole #7.

Palace announced earlier that, the company completed terms of the MoU with PT. Solusi Coalindo with respect to a potential coal production agreement.

The subject of the MoU is PT. Solusi Coalindo?s 100% interest in a coal exploration project (KCM Project) which comprises approx. 200 hectares, which in turn is part of a larger 4,000 hectare Coal Contract of Works (CCOW).

Editing by Adianto P. Simamora