Asiamet Resources will use the proceeds of up to US$7.9 million from a placement to fund advancement of the Beruang Kanan Main (BKM) Copper Project in Indonesia. It will fund completion of the definitive feasibility study (DFS) for BKM, drilling of high priority targets near BKM, and expansionary drilling at the Beutong porphyry project.
The placing shares, which will be issued and settled in CREST, have been conditionally placed with certain institutional and other investors. The placing is subject to admission of the shares to trading on AIM. Application has been made for the shares to be admitted to trading on AIM and it is expected that admission will take place on or around August 15.
Optiva Securities is acting as broker in connection with the placing. Natural Resources Global Capital Partners Limited (NRG) is acting as financial adviser in connection with the placing.
The placing shares represent, in aggregate, approximately 16.3% of the company's issued ordinary share capital as enlarged by the issue of the placing shares.
Net proceeds will be used for:
• Completing the DFS for the BKM project and advance project financing initiatives;
• Drilling of high priority copper and polymetallic targets close to the BKM deposit where previous scout drilling has reported intersections, such as 10 metres @ 2.52% copper, including 2 metres @ 7.45% copper, and where rock samples have reported up to 26.1% copper, 57 g/t silver and 35.6% zinc, 26.2% lead, 2.94% copper, 1.0 g/t gold and 3440 g/t silver;
• Drilling aimed at expanding the Beutong porphyry copper-gold-molybdenum deposit to the west, east and at depth where strong mineralisation remains open; and
• General working capital purposes.
Asiamet’s CEO Peter Bird said, “Over the past three years Asiamet has continued to develop its highly promising copper assets. The company has strategically positioned itself as one of the few junior companies with a quality medium-scale near-term copper development opportunity and an attractive pipeline of organic copper growth projects - all in a rising copper market.
“The strong support we have received from both large institutions and loyal retail investors in this capital raising is testament to the strength of our projects and team.
“With this backing we are now extremely pleased to be in a position where we can complete the BKM bankable feasibility study, test some of the high priority drill targets around BKM and re-commence expansion drilling of the exciting Beutong porphyry system.”