Kalimantan Gold extends Jelai Exploration Licence
Thursday, June 23 2011 - 06:35 PM WIB
This fulfils one of the two conditions outstanding in respect of the option agreement signed with Tigers Realm Minerals Pty Ltd. announced on February 16, 2011.
The other outstanding condition is the grant of the forestry permits required for the proposed exploration activities. The Company has submitted the necessary documentation to apply for these permits and the Directors are confident that they will be issued shortly. In recognition of this expected timing, Tigers have extended the period for the fulfilment of this condition until August 16, 2011.
The terms of the option agreement require Tigers to spend a minimum of $2 million on exploration in the first 18 months after the conditions are met. Tigers can incrementally earn up to a 70% interest in the Jelai Project by spending US$6 million and completing a Bankable Feasibility Study ("BFS") by the IUP expiry date. If Tigers do not complete the BFS by the IUP expiry date, its interest earned in Jelai will convert to a royalty capped at two times its investment in the Jelai project.
Immediately following receipt of the forestry permits, Tigers expect to commence site preparation work for their proposed initial drill programme. This will be aimed at increasing the existing mineralized deposit at Jelai and testing the prioritised targets in the highly mineralised epithermal vein system. (alex)