Kalimantan Gold Gets Extension on Gold Mining Permit

23 June 2011 (Last Updated June 23rd, 2011 18:30)

Kalimantan Gold Corporation has extended its mining permit at the Jelai Gold project in East Kalimantan until 2 June 2015. The extension fulfils one of the two conditions of the option agreement signed with Tigers Realm Minerals on 16 February 2011. Tigers has extended the pe

Kalimantan Gold Corporation has extended its mining permit at the Jelai Gold project in East Kalimantan until 2 June 2015.

The extension fulfils one of the two conditions of the option agreement signed with Tigers Realm Minerals on 16 February 2011.

Tigers has extended the period for the fulfilment of second condition until 16 August 2011, which involves securing forestry permits for the proposed exploration activities.

Under the terms of the agreement, Tigers will have to spend $2m on exploration in the first 18 months after the conditions are met.

In addition, Tigers can incrementally earn up to a 70% interest in the Jelai Project by spending $6m and completing a bankable feasibility study before the expiry date.

Once the forest permits are received, Tigers will begin preparation work for its proposed initial drill programme.