Realm Resources updates C. Kalimantan coal project payment

By Romel S. Gurky

Australia-listed firm Realm Resources Limited and its partners have agreed to amend the date for the Tranche 2 payment, the time at which its interest in the Katingan Ria Coal Project in Central Kalimantan is increased.

The revised date will now fall within two months from satisfaction of all conditions precedent, with 30 June 2012 as the cut off date, the company said.

The original master agreement anticipated the satisfaction of all conditions precedent by January 2012 with Realm required to make the Tranche 2 payment three months later.

As previously advised, the company anticipates that all Tranche 2 conditions precedent should now be satisfied in March 2012. Should this be the case, then the Tranche 2 payment would be made in May 2012, at which point Realm?s interest in the Katingan Ria Project would increase to 75% from its current 51%.

Katingan Ria is on track to become Realm?s first thermal coal operation, with initial production anticipated for H2 2012.

Editing by Denny H. Tarigan