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Placing of Common Shares to Raise £6 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

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 £6.0m (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 £330,000 (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:

Director Holding of common shares   Percentage of Enlarged Share 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%

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