Realm provides Katingan Ria coal project acquisition update

Australia-listed firm Realm Resources Ltd reported Monday an update on the potential acquisition of the Katingan Ria Coal Project in Indonesia (Katingan Ria Project).

As announced on 12 April 2011, Realm has an exclusive option to acquire all of the issued capital in Kalres Limited (Kalres), for an aggregate consideration of US$29.6 million and the issue of 15 million performance rights. Should the acquisition proceed, Realm will effectively have a 75% interest in the Katingan Ria project.

The Katingan Ria Project is an advanced thermal coal exploration project with the potential to progress to mining within 12 months. The project covers 5,053 hectares under Mining Business Permit for Exploration (IUP Exploration) No. 274. It is located in Central Kalimantan within the Katingan Hulu district, approximately 175km North West of the regional capital of Palangkaraya.

Kalres is a party to a Master Agreement with PT Sinar Mulia Anugerah Aguing (PT SMAA), under which Kalres can acquire up to a 75% interest in an Indonesian coal company, PT Katingan Ria (PTKR), which holds the Katingan Ria Project.

At present, Realm has advanced its due diligence on Kalres, PT SMAA and PTKR in accordance with the terms of the Master Agreement and as part of the Company's strategy to identify and develop opportunities in the bulk commodity sector. (romel)