TIDMARS
For Immediate Release
London AIM - Symbol "ARS"
The Information Contained Within This Announcement Is Deemed By The
Company To Constitute Inside Information As Stipulated Under The Market
Abuse Regulations (EU) No. 596/2014 ("Mar"). With The Publication Of
This Announcement Via A Regulatory Information Service ("RIS"), This
Inside Information Is Now Considered To Be In The Public Domain.
11 August 2017
Asiamet Resources Limited
Placing Of Common Shares to Raise GBP6 Million (Approximately Us$7.9
Million) To Fund Completion of the Definitive Feasibility Study at the
BKM Copper Project and Expanded Drilling Programs around BKM and At
Beutong
11 August 2017 - Asiamet Resources Limited, (AIM: ARS) (the "Company"),
is pleased to announce a placing of 139,534,884 new common shares of
US$0.01 each in the Company (the "Placing Shares") at a price of 4.3
pence per Placing Share (the "Placing Price") to raise a total of
GBP6.0m (approximately US$7.9m) (before expenses) (the "Placing"). The
net proceeds from the Placing will be used to fund completion of the
definitive feasibility study for the Company's 100% owned flagship
Beruang Kanan Main ("BKM") project, drilling of high priority targets
nearby BKM, and expansionary drilling at the Beutong Porphyry Project
("Beutong"). 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 Placing
Shares to trading on AIM ("Admission"). Application has been made for
the Placing Shares to be admitted to trading on AIM and it is expected
that Admission will take place on or around 15 August 2017.
Optiva Securities Limited ("Optiva") 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 Company and Optiva
have entered into a placing agreement pursuant to which the Company has
given conventional warranties and indemnities. Optiva also has certain
termination rights in the event of certain force majeure events prior to
Admission. The Company has agreed to pay fees and expenses in connection
with the Placing amounting to, in aggregate, approximately GBP330,000
(approximately US$432,300).
The Placing Price represents a discount of approximately 9.3 per cent.
to the closing middle market price of an ordinary share of 4.7 pence on
10 August 2017, being the latest practicable closing middle market price
prior to the announcement of the Company's intention to perform the
Placing.
The Placing Shares represent, in aggregate, approximately 16.3 per cent.
of the Company's issued ordinary share capital as enlarged by the issue
of the Placing Shares. The Placing is being conducted within the
Company's existing share allotment authorities. The Placing Shares, when
duly issued and fully paid, will rank par passé in all respects
with the Company's existing common shares.
Antony Manini, a Director and Executive Chairman of the Company, Stephen
Hughes, a Director and Vice President Exploration of the Company, and
Faldi Ismail, a Director of the Company, are participating in the
Placing and have agreed to subscribe for 1,000,000, 418,605 and 283,395
Placing Shares respectively at the Placing Price.
In addition, Significant Shareholders Asipac Group Pty Ltd. ("Asipac")
and Namarong Investments Pty Ltd. ("Namarong") are participating in the
Placing and have agreed to subscribe for 7,441,860 and 7,209,302 Placing
Shares respectively, at the Placing Price.
On Admission, the shareholdings in the Company of Asipac and Namarong
will be 41,913,340 common shares (4.90%) and 36,334,069 common shares
(4.25%) respectively.
JP Morgan Asset Management has participated in the Placing and agreed to
subscribe for 71,010,118 Placing Shares at the Placing Price. Upon
Admission, JP Morgan Asset Management will have a beneficial interest in
the Company of 71,010,118 common shares, which will represent
approximately 8.31% of the enlarged share capital of the Company as at
Admission, and thus be a Significant Shareholder.
Peter Bird, Asiamet CEO commented:
"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 Cu-Au system. News
flow will be strong and we look forward to keeping all stakeholders
engaged as the momentum of our project work increases and results come
to hand."
Use of proceeds
Net proceeds from the Placing will be used for:
-- completing the definitive feasibility study for the BKM Copper 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 10m at 2.52% Cu incl. 2m at 7.45% Cu (see RNS dated 23 February
2017), and where rock samples have reported up to 26.1% Cu, 57g/t Ag (see
RNS dated 19 July 2017) and 35.6% Z, 26.2% Lead, 2.94% Cu, 1.0g/t
Au and 3440g/t Ag (see RNS dated 9 June 2017);
-- drilling aimed at expanding the Beutong Porphyry Cu-Au-Mo deposit (40%
owned by the Company with the option to own up to 80%) to the west, east
and at depth where strong mineralisation remains open (for example hole
BEU0700-03 in Beutong East Porphyry intersected 385m at 0.68% Cu, 0.21g/t
Au from 74m to 459m incl. 148m at 0.81% Cu, 0.15g/t Au open to depth).
See ARS RNS dated 26 November 2014 for the Resource details; and
-- general working capital purposes.
Background
-- The results of the preliminary economic assessment on BKM, released on 5
April 2016 in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") which demonstrated a
post-tax NPV10 of US$204 million and IRR of 39% based on a long-term
copper price of US$3.25/lb generating US$388 million after tax net free
cash flow from production of 391 Mlbs of copper cathode over an initial 8
year mine life.
-- The work program for the bankable feasibility study is well advanced with
final work to be focused on:
-- Detailed metallurgical test work to optimise copper recoveries;
-- Project options, optimisation and value engineering;
-- Environmental impact assessment;
-- Mining, geotechnical, and hydrology works;
-- Mining infrastructure and power optimisation; and
-- Final transport, logistics and marketing studies.
In addition to the BKM feasibility work, further exploration and
Resource delineation drilling is planned to be undertaken at BKM,
Beruang Kanan West ("BKW") and Beruang Kanan South ("BKS") in order to
expand the Resource base.
Drilling at Beutong will be focused on testing high priority areas along
strike and at depth where the deposit remains open and strongly
mineralised.
On Admission, the shareholdings of the directors of the Company will be
as follows:
Percentage
of
Holding of Enlarged
common Share
Director shares Capital
Peter Pollard 408,501 0.05%
Tony Manini 28,223,277 3.30%
- Indirect: AJM Investco Pty Ltd (Manini Family Superfund
A/C) 17,294,258 2.02%
- Indirect: Antman Holdings Pty Ltd. 10,772,117 1.26%
- Direct 156,902 0.02%
Peter Bird - Direct - -
Raynard von Hahn - Direct 160,994 0.02%
Faldi Ismail - Direct 5,473,395 0.64%
Stephen Hughes - Direct 3,189,982 0.37%
Enquiries:
Tony Manini
Executive Chairman, Asiamet Resources Limited
Email: tony.manini@asiametresources.com
Peter Bird
Director & CEO, Asiamet Resources Limited
Email: peter.bird@asiametresources.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
NRG Capital Partners
Mick Oliver, Rita Adiani
Telephone: +44 20 3709 4505,4504
Email: mick.oliver@nrgcapitalpartners.com,
rita.adiani@nrgcapitalpartners.com
FlowComms Limited
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Stephen Allen
Telephone: +61 8 9480 2500
Email: Andrew.Thomson@rfcambrian.com / Stephen.Allen@rfcambrian.com
Market Abuse Regulation
MAR became effective from 3 July 2016. Market soundings, as defined in
MAR, were taken in respect of the Placing, with the result that certain
persons became aware of inside information, as permitted by MAR. That
inside information is set out in this announcement and has been
disclosed as soon as possible in accordance with paragraph 7 of article
17 of MAR. Therefore, those persons that received inside information in
a market sounding are no longer in possession of inside information
relating to the Company and its securities.
Important notice
Neither the contents of the Company's website nor the contents of any
website accessible from hyperlinks on the Company's website (or any
other website) is incorporated into, or forms part of, this
announcement.
This announcement does not constitute, or form part of, a prospectus
relating to the Company, nor does it constitute or contain any
invitation or offer to any person, or any public offer, to subscribe for,
purchase or otherwise acquire any shares in the Company or advise
persons to do so in any jurisdiction, nor shall it, or any part of it
form the basis of or be relied on in connection with any contract or as
an inducement to enter into any contract or commitment with the Company.
The content of this announcement has not been approved by an authorised
person within the meaning of the Financial Services and Markets Act 2000
("FSMA").
This announcement is not for publication or distribution, directly or
indirectly, in or into the United States of America. This announcement
is not an offer of securities for sale into the United States. The
securities referred to herein have not been and will not be registered
under the U.S. Securities Act of 1933, as amended (the "Securities Act"),
and may not be offered or sold in the United States, except pursuant to
an applicable exemption from registration. No public offering of
securities is being made in the United States. This announcement is not
for release, publication or distribution, directly or indirectly, in or
into the United States, Australia, Canada, the Republic of South Africa,
Japan or any jurisdiction where to do so might constitute a violation of
local securities laws or regulations (a "Prohibited Jurisdiction"). This
announcement and the information contained herein are not for release,
publication or distribution, directly or indirectly, to persons in a
Prohibited Jurisdiction unless permitted pursuant to an exemption under
the relevant local law or regulation in any such jurisdiction. This
announcement has been issued by and is the sole responsibility of the
Company.
Optiva is acting solely as broker exclusively for the Company and no one
else in connection with the contents of this announcement and will not
regard any other person (whether or not a recipient of this
announcement) as its client in relation to the contents of this
announcement nor will it be responsible to anyone other than the Company
for providing the protections afforded to its clients or for providing
advice in relation to the contents of this announcement. Apart from the
responsibilities and liabilities, if any, which may be imposed on Optiva
by FSMA or the regulatory regime established thereunder, Optiva accepts
no responsibility whatsoever, and makes no representation or warranty,
express or implied, for the contents of this announcement including its
accuracy, completeness or verification or for any other statement made
or purported to be made by it, or on behalf of it, the Company or any
other person, in connection with the Company and the contents of this
announcement, whether as to the past or the future. Optiva accordingly
disclaims all and any liability whatsoever, whether arising in tort,
contract or otherwise (save as referred to above), which it might
otherwise have in respect of the contents of this announcement or any
such statement.
NRG is acting solely as financial adviser exclusively for the Company
and no one else in connection with the contents of this announcement and
will not regard any other person (whether or not a recipient of this
announcement) as its client in relation to the contents of this
announcement nor will it be responsible to anyone other than the Company
for providing the protections afforded to its clients or for providing
advice in relation to the contents of this announcement. Apart from the
responsibilities and liabilities, if any, which may be imposed on NRG by
FSMA or the regulatory regime established thereunder, NRG accepts no
responsibility whatsoever, and makes no representation or warranty,
express or implied, for the contents of this announcement including its
accuracy, completeness or verification or for any other statement made
or purported to be made by it, or on behalf of it, the Company or any
other person, in connection with the Company and the contents of this
announcement, whether as to the past or the future. NRG accordingly
disclaims all and any liability whatsoever, whether arising in tort,
contract or otherwise (save as referred to above), which it might
otherwise have in respect of the contents of this announcement or any
such statement.
Forward looking statements
This announcement includes "forward-looking statements" which include
all statements other than statements of historical facts, including,
without limitation, those regarding the Company's business strategy,
plans and objectives of management for future operations, or any
statements proceeded by, followed by or that include the words "targets",
"believes", "expects", "aims", "intends", "will", "may", "anticipates",
"would", "could" or similar expressions or negatives thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond the Company's control
that could cause the actual results, performance or achievements of the
Company to be materially different from future results, performance or
achievements expressed or implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions
regarding the Company's present and future business strategies and the
environment in which the Company will operate in the future. These
forward looking statements speak only as at the date of this
announcement. The Company expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based,
unless required to do so by applicable law or the AIM Rules.
Qualified Person
Data disclosed in this announcement have been reviewed and verified by
ARS's qualified person, Stephen Hughes, P. Geo, Vice President
Exploration of the Company and a Qualified Person within the meaning of
NI 43-101 and for the purposes of the AIM Rules for Companies.
Currency Comparison
Where comparisons in this announcement are made between sterling and
United States dollars (the reporting currency of the Company), the
conversion rate applied is GBP1.00: US$1.31
Glossary of Technical Terms
"Mineral A "Mineral Resource" is a concentration or occurrence
Resource" of diamonds, natural solid inorganic material, or
natural solid fossilized organic material including
base and precious metals, coal, and industrial minerals
in or on the Earth's crust in such form and quantity
and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity,
grade, geological characteristics and continuity of
a Mineral Resource are known, estimated or interpreted
from specific geological evidence and knowledge.
"CIM" The reporting standard adopted for the reporting of
the Mineral Resources is that defined by the terms
and definitions given in the terminology, definitions
and guidelines given in the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral resources and Mineral Reserves (December 2005)
as required by NI 43-101. The CIM Code is an internationally
recognised reporting code as defined by the Combined
Reserves International Reporting Standards Committee.
"lbs" Pounds (measure of weight)
"Mlbs" Million pounds (measure of weight0
"g/t" grams per tonne; equivalent to parts per million ('ppm').
"grade" The proportion of a mineral within a rock or other
material. For copper mineralisation this is usually
reported as % of copper per tonne of rock (g/t)
"intersection" Refers to a sample or sequence of samples taken across
the entire width or an ore body or mineralised zone.
The intercept is described by the entire thickness
and the average grade of mineralisation
"rock samples" Rock chip samples approximately 2kg in size that are
typically collected from surface outcrops exposed
along rivers and mountain ridgelines
"porphyry" an igneous rock containing coarse crystals, as phenocrysts,
in a finer-grained groundmass
"Cu" The chemical symbol for copper
"Au" The chemical symbol for gold
"Ag" The chemical symbol for silver
"Zn" The chemical symbol for zinc
"Mo" The chemical symbol for molybdenum
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Asiamet Resources Limited via Globenewswire
http://www.asiametresources.com
(END) Dow Jones Newswires
August 11, 2017 02:00 ET (06:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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