Realm provides Katingan coal project acquisition update
Thursday, June 23 2011 - 04:12 AM WIB
Katingan Ria is an advanced thermal coal exploration project with the potential to progress to mining within 12 months. The company has advanced its due diligence on Kalres Limited (Kalres), PT Sinar Mulia Anugerah Aguing (PT SMAA) and PT Katingan Ria (PTKR), as part of its strategy to identify opportunities in the bulk commodity sector, the company said.
Realm announced on 12 April 2011 that it has secured an exclusive option to acquire all of the issued capital in Kalres, a company incorporated in the Cayman Islands for an aggregate consideration of US$29.6 million and the issue of 15 million performance rights. Kalres is a party to a Master Agreement with PT SMAA, under which Kalres can acquire up to a 75% interest in an Indonesian coal company, PTKR, which holds the Katingan Ria concession (Katingan Ria Project).
The Katingan Ria Project covers 5,053 hectares under Mining Business Permit for Exploration (IUP Exploration) and is located within the Katingan Hulu district, approximately 175km North West of the regional capital of Palangkaraya.
The mineral concession area is overlain by two forestry production concessions that have largely completed their operations in this area. This is expected to considerably simplify the permitting process for the commencement of production. (romel)