Realm Resources secures 51% of Katingan Ria thermal coal project

Australia-listed firm Realm Resources Limited announced Thursday that it has completed the acquisition of Kalres Limited and through Kalres acquired 51% of PT Katingan Ria (PTKR), an advanced thermal coal exploration project located in Central Kalimantan, Indonesia, for a total transaction value of US$12.6 million and 15 million Performance Rights.

The Katingan Ria Project has the potential to establish Realm as a thermal coal producer within the next 12 months in a nation that has an established coal industry; and is ideally located to export to the high demand southeast Asian markets. Kalres is party, to a Master agreement under which Kalres can acquire up to a 75% interest in PTKR.

Commenting on the acquisition, Realm?s Managing Director Richard Rossiter said, ?This is a company transforming acquisition. We are excited to have reached this significant milestone in the company?s progress as a coal developer. Work now begins to accelerate the path to production and complete the acquisition to the agreed 75% ownership level.?

A feasibility study on the Katingan Ria Project will be refined with the aim of bringing the Katingan Ria Project into production by mid CY2012. In addition, PTKR will progress the Pinjam Pakai Exploitation licence (which allows mining) in respect of 1,500 hectares in the southern part of the Katingan Ria Project as part of Tranche 2 under the Master Agreement. Tranche 2 acquisition is scheduled to be completed by 31 March 2012 subject to satisfactory feasibility study results. (romel)