TIDMARS
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
Tony Manini
Executive Chairman, Asiamet Resources Limited
Email: tony.manini@asiametresources.com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: 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 /
Stephen.Allen@rfcambrian.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: 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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UPDSFASIEEDSEIM
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June 12, 2023 02:15 ET (06:15 GMT)
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