REG - Asiamet Resources Ld - End of Year Project Status Update

Asiamet ResourcesAnnouncement

28/12/2023 07:00

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RNS Number : 9827X  Asiamet Resources Limited  28 December 2023

28 December 2023

 

End of Year Project Status Update

 

Asiamet Resources Limited ("Asiamet" or the "Company") announces a further
update in relation to the Company's wholly owned, feasibility stage, BKM
copper project located in Central Kalimantan, Indonesia.

Debt Finance Process

·    Positive engagement is continuing with the prospective Lead Bank
credit committee approvals process. Significant progress has been made in
December on key items relating to BKM project financial modelling and general
approvals requirements. A submission to the prospective Lead Bank credit
committee to act as lead arranger for the BKM project debt finance will be
undertaken early in the new year.

·    The Company has had initial engagement with a prominent Indonesian
bank to introduce Asiamet, PT KSK and the BKM Copper project and feedback has
been positive.  With very few energy transition metals projects at the
financing stage, the Board expects that the BKM Copper Project will be
strongly supported by Indonesian banks.

Offtake and Prepayment Financing

·    Prospective prepayment finance providers (through product offtake)
continue to be actively engaged in due diligence. With one indicative term
sheet received to date, this workstream will pick up momentum as the debt
financing process advances and the terms of the debt finance can be considered
alongside offtake and prepayment financing terms.

EPC Engagement

·    The Company has advanced negotiations with highly reputable
Indonesian and Chinese engineering, procurement and construction ("EPC") firms
to deliver the next phase of engineering for the required BKM Copper Project
Infrastructure. Commercial proposals have been received with reviews and
negotiations well advanced. Further updates will be provided once complete.

·    Subject to internal approvals, letters of intent will be issued and
agreements sought to be entered to commence early engineering works in Q1,
2024.

·    The Company is in discussions with Jakarta based project management
services companies to determine suitability for the provision of project
management support in relation to the commencement of detailed engineering.

BKM Project Optimisation

·    Reviews of alternative heap leach facility locations and open pit
mine designs are close to being finalised. The implications of these
assessments are being internally reviewed to determine if any changes are to
be taken forward in the BKM development plans.

·    Opportunities related to engineering and low-cost sourcing are
expected to be realised through the aforementioned engineering engagement with
follow through on procurement and potential construction execution once
engineering has commenced.

 

BKM Project Permitting

·    Discussions are continuing with the Ministry of Environment and
Forestry and the logging contractor to finalise commercial terms and deliver
the necessary Memorandum of Understanding for the shared use of the forestry
access road to the BKM site. This is the final item required to complete the
Company's submission for the change of forestry concession.

·    A well-respected environmental consultant, PT Sonokeling, has been
engaged to complete some additional work required to update the BKM project
environmental and social impact assessment. This work is necessary due to
changes in the project design and some of the related regulations. It is
expected to be completed in H1, 2024.

Power Supply for BKM Project

·    The assessment of suitable biomass sources has advanced significantly
over the last six weeks with several site visits to Central Kalimantan by the
Indonesian consulting firm responsible for in country coordination of the
project. More than sufficient volumes of available biomass material for the
power plant have been identified.

·    Optimising the location of the power station taking into
consideration biomass source locations, transport costs and costs for
installation of the main transmission line to site is the current focus and
the consulting group is expected to deliver their final report in early Q1
2024.

   Concentrate Logistics

·    An internal scoping study has been completed for the combined truck
and river barge haulage of concentrate product. A local specialist consultant
is reviewing the proposed system.

·    Whilst still early in the process, costings to date look sufficiently
encouraging to continue engaging with various parties on the potential for
producing a pyrite and copper concentrate from the BKM primary resource which
sits immediately beneath the leachable copper resources.

·    Pyrite, an iron sulphide mineral contained within the BKM copper
resource, has the potential to be a supplementary source of sulphur for
producing the large volumes of sulphuric acid needed in the acid leach process
(HPAL) in Indonesia's nickel industry. There is a significant opportunity to
increase the overall copper recovered from the BKM resource and deliver pyrite
to an external facility for processing.

 

Darryn McClelland, Chief Executive Officer, commented:

"As 2023 draws to a close, we reflect on the achievements of the last 12
months and the path forward in 2024 and beyond. 2023 has seen a new baseline
for the BKM Copper Heap Leach project delivered in the form of the fully
updated feasibility study. The study has been reviewed by an Independent
Technical Expert ("ITE") with the outcomes establishing the technical base for
the project financing process.

Asiamet, with its corporate advisory partner Grant Samuel, have been actively
engaged with a proposed Lead Bank to progress the requirements needed to
achieve first stage credit approval for the project as early as possible in
the New Year. Importantly, we have also formally introduced the BKM Copper
project to a leading Indonesian bank with a view to progressing more detailed
engagement early in 2024.

An area of recent focus has been the engagement of engineering resources for
the next phase of BKM project execution. This has to some degree been born
from the outcomes of the ITE review and engagement with prospective Lead Bank
relating to increasing levels of project confidence and accuracy as we advance
project financing. We have a shortlist of preferred engineering companies to
take the project forward, and will advise the market of these key
appointment(s) when formalised.

I would like to extend thanks to all Asiamet shareholders and stakeholders who
have been involved with the Company over the last 12 months. Whilst aspects of
the project have not advanced to the extent we initially intended at the start
of 2023, we have made substantive progress in all areas related to the
development of BKM Copper Project. The path forward to deliver Asia's newest
copper mine is clear and we intend to continue advancing towards that primary
goal in 2024. Our major shareholder (DOID) is actively assisting the Company
to deliver the BKM project and is very supportive of our strategy to leverage
the successful development of this initial heap leach copper mine into
building a larger energy transition metals business in the Asian region."

 

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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