Realm provides Katingan Ria coal project acquisition update

Australia-listed firm Realm Resources Limited reported Tuesday an update on its potential acquisition of the Katingan Ria Coal Project in Indonesia.

Katingan Ria is an advanced thermal coal exploration project located in Central Kalimantan, Indonesia. Realm continues to advance 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.

Permitting ? IUP operations granted
The IUP Operations (mining permit) has been granted to PTKR paving the way for the upgrading of the forestry permits to Pinjam Pakai operations. Management expects this largely process-driven approval to be granted within the next six months. The directors of Realm believe that the status of the Katingan Ria Project?s permitting brings the Katingan Ria Project a step closer to production.

Shareholder approval and proposed capital raising
At the General Meeting of the Company?s shareholders on 5 September 2011, shareholders approved the Company?s proposed capital raising of up to $15.000.000 (before costs and expenses) to fund the Company?s acquisition of Kalres and an initial 51% interest in PTKR under the terms of the Master Agreement (Initial Placement).

Shareholders have also approved the subsequent placement to raise up to $31.000.000 (before costs and expenses) (Subsequent Placement). The Company?s executive team are also exploring alternative funding sources in order to maximise shareholder value.

Information regarding the Katingan Ria Project, the material transaction terms and the contemplated capital raising are set out in further detail in the Notice of Meeting and Explanatory Statement dated 1 August 2011 and released to ASX on 4 August 2011 (Notice of Meeting). Defined terms used in this announcement have the same meaning ascribed to them in the Notice of Meeting. (romel)