REG - Asiamet Res Ltd - Corporate Update - Advisors Appointed

Asiamet ResourcesAnnouncement

12/06/2023 07:15

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RNS Number : 3806C  Asiamet Resources Limited  12 June 2023

12 June 2023

Corporate Update - Advisors Appointed

 

Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to provide
the following update and outlook for the remainder of the year.

BKM Copper Feasibility Study Update

Results of the BKM Copper Feasibility Study update ("FS Update") were
delivered on 10 May 2023. Key metrics of the study were (note all $ are US
Dollars):

·    Life of Mine Revenue, $1.4Bn

·    NPV(8,) $162.8M (post tax, excluding closure costs)

·    IRR, 21% (post tax, excluding closure)

·    Payback Period, 3.4 years.

Whilst the FS Update outcomes have been reported, a body of technical work
aimed at further improving both capital and operating costs is continuing. Any
positive outcomes from this work will flow through to the project financing
process and be incorporated into the engineering design phase of the project.

Site visits as part of financing due diligence are planned for the Independent
Technical Expert (ITE) and a potential lead finance bank in July 2023.

Appointment of Corporate Advisors

The Company has appointed Grant Samuel Corporate Finance ("Grant Samuel") as
its Corporate Advisor for the BKM copper project finance process, inclusive of
debt-equity and any associated M&A activity. Grant Samuel is an Australian
based corporate advisory specialist with deep mining finance experience
including a number of current and recent project finance mandates involving
Indonesian corporates, investors, and banks. Grant Samuel's mandate is defined
by two parallel workstreams:

1.   Support the Company across all debt financing activities for the BKM
Copper Project including senior debt, offtake finance, equipment finance etc.

2.   Assist with strategy and management of all processes related to
securing the equity component of the BKM Copper Project finance including
strategic development partnerships and/or the partial or full sell-down of
either or both of the Company's projects.

Since release of the updated BKM feasibility study, Asiamet has received
considerable inbound interest from Chinese corporates. To support engagement
with this segment of the market Beijing based boutique advisory firm, China
Zenith Capital Limited ("Zenith") has also been engaged to assist with
securing options for China-sourced financing including offtake and equipment
finance, project construction and strategic sourcing related finance. Zenith
specialises in mining finance and corporate mergers and acquisitions.

Chinese investment in the Indonesian mining and processing industry remains
very strong, supported by government-to-government bilateral
relationships.

Appointment of Lead Bank and Independent Technical Expert (ITE)

The Company has previously reported on its engagement with a number of
potential lead banks for the BKM project debt finance. Engagement has now
ramped up significantly since the release of the FS Update with site visits to
the BKM project site by bank and ITE representatives planned for mid-July.

Copper Cathode Offtake

The Company has commenced discussions with several well-known and highly
respected groups who have expressed interest in securing copper cathode
offtake from the BKM project Some groups have commenced due diligence in
support of providing an indicative term sheet for offtake and engagement with
these groups and others will be supported by Grant Samuel as part of their
project finance advisory mandate.

Path Forward

The remainder of 2023 will see the Company focused on two key deliverables:

1) Securing a debt and equity finance package for development of the BKM
Copper project

2) Closing out various project optimisation opportunities including site-based
works as required.

The timing of final stage permitting, including posting environmental bonds
together with detailed engineering design and potential early construction
activity, is all aligned with securing the project finance package.

 

Darryn McClelland, Chief Executive Officer commented:

"It has been a busy first six months of 2023 culminating in the delivery of
the updated BKM Copper Project Feasibility Study in early May. Our focus is on
progressing multiple workstreams that will contribute to the delivery of a
project finance package for BKM. We are pleased to appoint Grant Samuel on a
comprehensive mandate to support the Company and deliver value to Asiamet
stakeholders. In addition to Grant Samuel the engagement of China Zenith
delivers a strong message that we see Chinese investment in a variety of
possible forms as being an important part of the Company's development plans.
The Company is open to any and all means of unlocking the value of its
portfolio of assets which we believe is evident in the appointment of both
advisory firms.

The level of recent engagement with a potential lead senior bank and the ITE
team lead has been particularly pleasing We are currently facilitating
discussions between the ITE and various consultants who contributed to the FS
update and preparing for a site visit by the ITE and bank representatives to
BKM early next month. The level of interest in copper cathode offtake from BKM
is high and we expect to be able to engage a preferred offtake partner at an
appropriate time as part the project financing process.

The remainder of 2023 will be a very busy time for the team as we push a long
way down the financing path for the development of our first mine at BKM. The
second half of the year will also see some limited site-based work in support
of further improving capital and operating costs and to support updated
submissions to various government departments. We look forward to being able
to report on the progress of all these activities over the course of the next
6 months."

 

 

ON BEHALF OF THE BOARD OF DIRECTORS

Darryn McClelland, Chief Executive Officer

For further information, please contact:

-Ends-

Darryn McClelland
Chief Executive Officer, Asiamet Resources Limited

Email: darryn.mcclelland@asiametresources.com
(mailto:darryn.mcclelland@asiametresources.com)

 

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

Andrew Thomson / Stephen Allen

Telephone: +61 8 9480 2500

Email: Andrew.Thomson@rfcambrian.com (mailto:Andrew.Thomson@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

 

FORWARD-LOOKING STATEMENT

This news release contains forward-looking statements that are based on the
Company's current expectations and estimates. Forward-looking statements are
frequently characterised by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other
similar words or statements that certain events or conditions "may" or "will"
occur. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or
expressed in such forward-looking statements.   Such factors include, among
others: the actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; possible variations in ore grade or recovery rates; accidents, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing; and fluctuations in metal prices.  There
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended.  Any forward-looking statement speaks
only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.

 

 

 

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