TIDMARS
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
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
Nominated & Financial Adviser
Strand Hanson Limited
James Spinney / James Dance / Rob Patrick
Telephone: +44 20 7409 3494
Email: asiamet@strandhanson.co.uk
Broker
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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END
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October 06, 2023 02:00 ET (06:00 GMT)
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