REG - Asiamet Res Ltd - Business Update

Asiamet ResourcesAnnouncement

02/03/2022 09:00

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RNS Number : 3584D  Asiamet Resources Limited  02 March 2022

2 March 2022

 

Asiamet Business Update

 

Asiamet Resources Limited ("Asiamet" or the "Company") provides the following
update in relation to the extension to the exclusivity period provided to PT
Delta Dunia Makmur Tbk. ("DOID") on 28 January 2022 and associated project
financing and development works.

 

Key Highlights:

 

·    DOID due diligence well advanced - further expert input required in
some technical areas

·    Appointment process for Tier 1 bank to lead debt financing is well
advanced

·    Bank appointed Independent Technical Expert (ITE) to provide input
into feasibility study update

·    NewPro Consulting and Engineering Services Pty Ltd (NewPro) appointed
to complete update of the 2019 Feasibility Study (2019 FS)

 

The Company has been working closely with DOID on several key workstreams
required to finalise their due diligence for the transaction announced on 3
November 2021 and for which the exclusivity period was subsequently extended
on 28 January 2022.  To finalise the diligence process, additional expert
input has been required in certain technical areas and with the recent Omicron
COVID-19 variant spreading quickly, the Government of Indonesia imposed
movement and quarantine restrictions which have resulted in site visits and
access to key consultants being delayed.

 

The Company and DOID have been engaging on the financing process for the BKM
copper project.  The Company has made substantial progress and negotiations
are being advanced, with a preferred bank to be appointed by the Company. The
bank will appoint an ITE to undertake an independent review of the BKM copper
project feasibility study to ensure it meets their required standards for debt
financing. The bank's ITE review of the feasibility study will conclude the
technical diligence process for DOID.

 

As part of the financing process, Asiamet has appointed NewPro to update the
2019 FS and complete any additional works required by the bank and its ITE to
meet its requirements for financing.  The primary purpose of this work is to
update for capital and operating cost estimates, key economic assumptions
including long term copper price, and changes emanating from the value
enhancement work completed over the past year such as a revised logistics
route, improved mine layout and sequencing, and the use of renewable energy
for power generation.  The feasibility study update is expected to be
completed early in H2 2022.

 

Ronald Sutardja, President Director of DOID commented:

"DOID is working as quickly as possible to finalise its due diligence.  In
parallel, DOID, as one of the largest mining contractors in Indonesia, is also
assisting Asiamet with inputs for the updated DFS.  We remain the largest
shareholder in Asiamet and are supportive of the advancement of the Company."

 

Tony Manini, Asiamet Executive Chairman commented:

"While DOID's due diligence has taken longer than we would have liked due to
unforeseen issues beyond the control of both parties, we now have a defined
pathway for achieving completion of the proposed transaction. DOID as our
largest shareholder remains very committed to supporting the Company to
achieve its objectives and the level of engagement with the DOID team
continues to increase.

We are pleased to advise that the Company is close to finalising the
appointment of a Tier 1 global bank to act as lead arranger for the Company
for the proposed debt finance facility for the BKM copper project.

Simultaneously as part of the project financing process we have commenced an
update of the 2019 FS which will incorporate updated pricing for operating and
capital costs along with revised long term copper pricing and inputs from
optimisation work completed as part of the value enhancement studies.
Consultants have been engaged and the FS update work is now underway.

Final assays for the BKZ drill program are expected shortly and a Mineral
Resource update for the BKZ deposit will be released in early Q2.

The momentum of activity is increasing across all workstreams and we look
forward to keeping stakeholders updated on progress."

 

Background to the DOID transaction

 

As announced on 3 November 2021, the Company entered into a Heads of Agreement
("HoA") with DOID, whereby subject to finalisation of due diligence and
conditions precedent, DOID will contribute US$50 million (on a staged basis)
towards the development of the BKM copper project, in exchange for an interest
of up to 51% in Asiamet's wholly owned subsidiary, Indokal Limited.  Indokal
Limited is the owner of the KSK Contract of Work (COW), located in Central
Kalimantan, Indonesia. The BKM copper project is located within the KSK COW.
Under the terms of the HoA, an initial exclusivity period of 90 days was
provided to allow DOID to complete due diligence.  The initial exclusivity
period was extended on 28 January 2022.

 

 

 

ON BEHALF OF THE BOARD OF DIRECTORS

Tony Manini, Executive Chairman

For further information, please contact:

-Ends-

Tony Manini
Executive Chairman, Asiamet Resources Limited

Email: tony.manini@asiametresources.com
(mailto:tony.manini@asiametresources.com)

 

 

Investor Enquiries

Sasha Sethi

Telephone: +44 (0) 7891 677 441

Email: Sasha@flowcomms.com (mailto:Sasha@flowcomms.com) /
info@asiametresources.com

Asiamet Resources Nominated Adviser
RFC Ambrian Limited

Bhavesh Patel / Stephen Allen

Telephone: +44 (0)20 3440 6800

Email: Bhavesh.Patel@rfcambrian.com (mailto:Bhavesh.Patel@rfcambrian.com)  /
Stephen.Allen@rfcambrian.com (mailto:Oliver.Morse@rfcambrian.com)

 

Optiva Securities Limited
Christian Dennis

Telephone: +44 20 3137 1903

Email: Christian.Dennis@optivasecurities.com
(mailto:Christian.Dennis@optivasecurities.com)

Follow us on twitter @AsiametTweets

 

This announcement contains inside information as stipulated under the Market
Abuse Regulations (EU) no. 596/2014 ("MAR").

 

 

 

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