Palace adds new producing coal project
Monday, September 9 2013 - 07:52 AM WIB
ASX-listed company Palace Resources Limited announced on Monday that it, through its proposed subsidiary Kalimantan Mining and Logistics Pte Ltd (KML), is finalizing joint venture negotiations with PT Rindra Bara Utama (RBU) to jointly develop a 200 ha producing project in Sumatra (MBM).
RBU is the legal holder of the IUP and it has necessarily all the mining approvals granted. The JV for the project will include a $2 royalty per ton plus a reimbursement of costs to date to RBU from KML, Palace said in a statement.
The MBM site has several coal outcrops and RBU has carried out extensive drilling on the site, it said, without providing further details.
As the new project is a joint venture between proposed subsidiary KML and the operating group RBU, there is no additional consideration apart from the royalty granted,
The proposal is subject to due diligence.
The firm also said it is finalizing documentation for the settlement of the KCM producing project in South Kalimantan and now anticipates to be producing in two separate locations over the coming months. The KCM project is developed by the firm in a joint venture with PT Solusi Coalindo.
Editing by Johannes Simbolon