Realm cancels option to up stake in C. Kalimantan coal project
Tuesday, April 23 2013 - 02:02 AM WIB
ASX-listed Realm Resources Ltd reported it has decided not to exercise an option to acquire an additional 24 percent stake in Katingan Ria thermal coal project in Central Kalimantan.
Realm, which holds a 51 percent stake in the project, initially planned to acquire another 24 percent stake from its Indonesian partner PT Sinar Mulia Anugerah Agung (SMAA).
The company said in a statement obtained on Tuesday that together with its Indonesian partners, it is committed to progress the Katingan Ria thermal coal project cooperatively under the current shareholding structure.
?In addition, Realm and PT SMAA have reaffirmed their intention to cooperatively build a larger coal business in the Katingan and adjacent regencies, by formalizing a Cooperation Agreement,? the company said.
Commenting on the development, Chairman Richard Rossiter said, ?We are pleased that, together with our partners, we have reaffirmed our agreement to cooperatively expand our coal business in the region. The focus will now shift to financing and development and completion of the permitting phase, following imminent release of the feasibility study results?.
The Katingan Ria Project covers 5,053 hectares under IUP (Exploration No. 274) and is located in Central Kalimantan within the Katingan Hulu district, approximately 175km North West of the provincial capital of Palangkaraya.
Editing by Reiner simanjuntak