REG - Asiamet Res Ltd - Corporate Update

Asiamet ResourcesAnnouncement

06/10/2023 07:00

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RNS Number : 9615O  Asiamet Resources Limited  06 October 2023

6 October 2023

 

Corporate Update

 

Asiamet Resources Limited ("Asiamet", "ARS" or the "Company") is pleased to
provide the following update across various workstreams for the development of
the Company's wholly owned, feasibility stage, BKM copper project located in
Central Kalimantan, Indonesia.

The financing workstreams with senior bank debt and prepayment finance through
copper cathode offtake are progressing on schedule and to expectations.

 

Highlights

 

Debt Finance Process

·    Independent Technical Expert ("ITE"), SRK Consulting (Perth) ("SRK"),
is finalising its review report post site visit and feedback from Asiamet. It
is expected this report will be issued to the potential lead bank within the
next 14 days. Positive feedback was provided by the ITE on various items
raised in previous project reviews and addressed in the updated Feasibility
Study as announced by the Company on 10 May 2023.

Independent Valuation

·    Grant Samuel, Australasia's leading independent corporate adviser, is
engaging with the potential lead bank and supporting ARS to finalise the
financing model and associated valuation metrics.

Offtake and Prepayment Financing

·    The Company has recently received an indicative term sheet from a
leading international metals trading group for financing tied to copper
cathode offtake ('prepayment financing') following detailed due diligence. The
terms provided are consistent with typical prepayment financing
arrangements.

·    Asiamet is in discussions with several other commodity trading groups
who remain engaged in due diligence for similar prepayment financing options.
The Company will negotiate terms with the preferred prepayment financier.

BKM Project Execution

·    Continued engagement with several Chinese engineering, procurement
and construction (EPC) and other EPC management (EPCM) groups active in
Indonesia is progressing well. It is expected a decision will be made in Q4
2023 with respect to engagement of project execution partners for BKM.

Site Access

·    Earthworks design for improvements necessary for the main forestry
access road to the mine site and construction of a small section of new road
are well advanced allowing more detailed planning of this work package to
commence. Improvement of the road network is a key enabler for execution of
site activities.

Forestry Use and Operational Permit

Work is ongoing to close out the final condition precedent relating to the
issuance of the BKM change of forestry use operational permit (PPKH-OP). Once
issued this allows activity on site with various site investigation programmes
proposed to support detailed design of project infrastructure and ultimately
site construction works.

 

Corporate Development

With a limited number of advanced copper and copper-gold projects in the
region, coupled with the uncertainty of future sources of copper supply, the
Company has been approached by several interested Asian companies looking to
advance the BKM copper project or make a direct investment in the
project/company.  We are actively pursuing these opportunities to ensure fair
and reasonable value for our stakeholders.

 

Darryn McClelland, Chief Executive Officer, commented:

"We are pleased to report the appointed ITE has completed their technical
review of the BKM Copper Feasibility Study update and provided their report
for ARS' comment. This is going through a final review process with report to
then be provided to the proposed lead bank to support their due diligence and
financial modelling activities. This is a critical step in moving forward with
the process to secure bank financing for BKM.

It is encouraging also to report receipt of an indicative term sheet for
copper cathode offtake finance from an internationally recognised metals
trading group. Whilst preliminary, and subject to various conditions
precedent, this represents a significant step forward in the overall financing
journey. Offtake finance remains a key part of the overall project finance
package bringing considerable benefits for both the project and shareholders.
Due diligence is ongoing with other potential offtake partners also hoping to
secure the copper cathode units that Asiamet will bring into production.

We continue to actively explore options for project delivery, engaging in
discussions with Chinese EPC contractors, dedicated design groups from China
and Indonesian EPCM companies. During Q4 2023, we anticipate making a final
decision on the project delivery model for BKM and appointment of our
execution partners. We are also nearing completion of all aspects required to
obtain the important operational stage forestry change of use designation for
BKM, which will be a significant milestone for the project.

The outlook for copper remains very robust, with strong medium to long term
demand forecast and a supply-side response challenged to meet demand. Notably,
new copper projects in the Asian region are exceedingly scarce and the BKM
copper project is strategically positioned to deliver LME grade A copper
cathode into this supply constrained market. The Company's up-to-date
feasibility study, which recently showcased excellent economics such as an
EBITDA of US$655.3 million over the life of mine and a post-tax NPV(8) of
US$162.8 million, serves to highlight the inherent value of the company. In
addition, since the publication of the updated feasibility study, the Company
has seen heightened levels of serious interest from a range of potential Asian
strategic companies looking for exposure to copper through Asiamet. Work on
progressing these opportunities, based upon appropriate valuations, progresses
in parallel to the financing workstream.

We are grateful for the continued support of investors and stakeholders
through this period and will keep the market informed as work on the
activities above progresses."

 

ON BEHALF OF THE BOARD OF DIRECTORS

Darryn McClelland, Chief Executive Officer

-Ends-

 

For further information, please contact:

 

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

Nominated & Financial Adviser
Strand Hanson Limited

James Spinney / James Dance / Rob Patrick

Telephone: +44 20 7409 3494

Email: asiamet@strandhanson.co.uk (mailto:asiamet@strandhanson.co.uk)

 

Broker

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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