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(ARS) Asiamet Resources Share Chat

Discussion in 'General Share Chat (ARS)' started by TupacAmaru, Oct 30, 2015.

  1. Groucho

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    18 January 2021


    Deal Update - Sale Process


    Asiamet Resources Limited ("Asiamet" or the "Company") in accordance with its continuous disclosure requirements provides the following update in relation to the binding Sale and Purchase Agreement ("SPA") signed and announced on 24 December 2020. Since the signing of the SPA, Asiamet has continued to work closely with PT WIN to progress preparations for the IPO of PT WIN on the Indonesian Stock Exchange in early 2021. However, the initial payment of US$2.5 million that was due and payable within 10 days of signing the SPA is yet to be received by the Company. Asiamet has been seeking formal clarification from PT WIN on the proposed timing for receipt of the initial payment and late today (Melbourne AEST) received formal advice from PT WIN requesting consideration of amendments in relation to the payments schedule agreed under the SPA. Asiamet is carefully considering its position in relation to the proposed amendments and plans to formally respond to PT WIN once in a position to do so.

    Asiamet remains confident of completing this important transaction with PT WIN and will advise the market of any developments as soon as it is practically possible to do so. Should any material amendments be agreed by the parties in relation to the SPA terms, appropriate consideration to defer the shareholder meeting as announced on 30 December 2020 will be given following consultation with the regulatory authorities.


    Sale and Purchase Agreement (SPA)

    As previously announced, on 24 December 2020 the Company signed a binding SPA with PT Wasesa Indo Nusa ("PT WIN"), an Indonesian private company, owned by Aeturnum Energy a 19.9% shareholder of Asiamet. PT WIN, subject to satisfying various conditions precedent will acquire Asiamet's wholly-owned subsidiary Indokal Limited ("Indokal"). Indokal is the 100% owner of the Kalimantan Surya Kencana Contract of Work ("KSK CoW"), including the BKM Copper Project, located in Central Kalimantan, Indonesia. Further details of this transaction is available on the Company website at www.asiametresources.com.
     
  2. Groucho

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    25 January 2021


    Termination of SPA for Acquisition of Indokal Limited


    Asiamet Resources Limited ("Asiamet" or the "Company") announces the termination of the binding sale and purchase agreement ("SPA") entered into with PT WIN as signed and announced on 24 December 2020 for the acquisition of Indokal Limited the owner of the Kalimantan Surya Kencana Contract of Work, located in Central Kalimantan ("the Transaction").

    Under the SPA, the first Tranche payment of US$2.5 million was not transacted by PT WIN within the agreed timeframe of 10 business days following the signing of the SPA and a subsequent extension period. The Company used best endeavours to ensure this payment was made, however this was not complied with and no reasonable explanation was provided other than a request for further changes to the terms of the binding SPA which were considered to be unacceptable and detrimental to the best interests of the Company. As a result the Asiamet Board and management considered that following this default and material breach of the SPA it had no other course of action but to terminate the transaction. Asiamet is considering all options available to it in respect of this matter and the impact on its business.

    General Meeting

    As a result of termination of the SPA the general meeting of shareholders as announced on 30 December 2020 to be held on 29 January 2021 for the approval of the transaction has been cancelled.

    KSK Contract of Work

    The KSK Contract of Work (KSK CoW) contains the development ready BKM Copper project with a completed feasibility study along with the polymetallic (Cu-Zn-Pb) BKZ resource, ~800 metres north of BKM ore body. The KSK CoW also has significant upside potential through identified exploration targets.

    Through the recent independent valuation work undertaken as part of the failed PT WIN transaction, the KSK CoW was valued in the range of $155-165 million for known ore reserves and mineral resources with no value attributed for exploration targets. Using the current spot copper price of $3.60/lb for the 2019 Feasibility Study, the attributable NPV8and IRR is $191 million and 24.4% respectively, excluding inferred resources and with no value assigned for exploration targets.

    Significant value remains to be unlocked through the technical value enhancement work which has continued throughout 2020 and further exploration of highly prospective targets to increase the KSK CoW mineral inventory.

    Value Enhancement

    Value enhancement (VE) work has been ongoing over the past 5-6 months with further metallurgical test work being undertaken in laboratories in Indonesia and Australia. Initial results indicate significantly increased copper recoveries using an alternate leaching process to that selected for the BKM feasibility study. Final test results and associated consultants reports are expected to be received shortly. Other VE work including modifications to mine design and capital works will be further evaluated based on the final results of the metallurgical test work. With significantly better copper prices and the likelihood of improved recoveries and mine life extensions flowing from this study work, a positive impact on the economics for the BKM copper project is anticipated.

    Business Development

    Copper prices have risen by ~74% to since the COVID pandemic induced market collapse of March 2020 when the initial investment in Asiamet was made by Aeternum Energy. Likewise markets and general investor sentiment, particularly for copper investments and commodities more generally, has rebounded very strongly.

    Development ready copper projects such as the KSK CoW with a robust feasibility study completed are scarce in the current market. Following the overall uplift in market sentiment over the past six months, the Company has received increasing inbound interest in the project and these options are being further explored. As the value enhancement work and project permitting are advanced towards completion over the next few months, the Company will be re-engaging with various debt and equity financiers on a project financing package.

    The Company will simultaneously continue with its strategy of evaluating various options to maximise shareholder value through partnerships, asset or trade sale (partial or full), business combination or a potential IPO in Indonesia.

    Tony Manini, Executive Chairman of Asiamet Resources commented:

    "While there is risk in every transaction, the termination of a sale process after investing a very significant amount of board and management time is always difficult. However, in this situation of material breach and non-compliance with clearly agreed terms of a binding SPA, and the lack of reasonable explanation or reasonable alternative, the Asiamet board was left with little choice but to terminate the agreement to protect the interests of our shareholders and all stakeholders associated with the KSK CoW and BKM copper project.

    Asiamet remains well positioned with a strong portfolio of copper and copper-gold assets in a strong copper market. Being of the few Company's holding 100% of a near term copper development project in the Asian region, investor interest has significantly increased in recent times and the Company intends to leverage this enhanced level of interest to secure development funding for BKM and continue building value for stakeholders across our portfolio of high quality projects."
     
  3. Groucho

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    25 January 2021

    Corporate Update Video

    Asiamet Resources Limited ("ARS" or the "Company") is pleased to announce that following today's announcement with regards to the termination of the SPA for the Acquisition of Indokal Limited, a video recording with Executive Chairman, Tony Manini is now available for shareholders to view on the Company's website at the following link:

    https://asiametresources.com/media/
     
  4. Groucho

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    1 February 2021


    Shareholder Requisition of General Meeting


    Asiamet Resources Limited ("Asiamet" or the "Company") advises that it has received a notice purported to be from its largest shareholder, Aeternum Energy, requesting the Company to convene a Special General Meeting of the Company's shareholders. The notice that has been received is not in a valid form and therefore directors are not required to act on it now, however it is apparent that our largest shareholder is seeking to take control of the Company without fair and reasonable process or acquisition. This action immediately follows PT WIN, an Indonesian Company owned by Aeturnum Energy, materially breaching the terms of a binding sale and purchase agreement with Asiamet for the acquisition of the Company's KSK Contract of Work in Indonesia.

    The Company is seeking the necessary advice with respect to convening a meeting of shareholders given the underlying circumstances and shareholders are advised to take no action at this time.

    The proposed resolutions below are an extract of the request that was sent to the Company.

    Proposed Resolutions:

    Resolution 1:

    That all current directors on the Board be removed.

    Resolution 2:

    That the current Chief Financial Officer of the Company be appointed as interim Chairman of the Board.

    Resolution 3:

    If Resolution 1 is passed, an interim management committee of three independent directors as nominated by the shareholders (the "Interim Board") be appointed to manage the day to day operations of the Company.

    Resolution 4:

    If Resolution 3 is passed, the Interim Board be empowered to appoint an independent auditor to review the conduct, operations and financial standing of the Company while under the Board's management and the Board's actions during the relevant period of time.

    In respect of Proposed Resolution 3, it is proposed that the following individuals be appointed to the Interim Board.

    (a) Mr Rezky Ardha Supriadi, an entrepreneur with key business and government relationships in Indonesia.

    (b) Mr Christopher Downs Keleher, a geologist with more than 30 years of experience including senior positions at RSC Consulting and Weatherford International

    (c) Mr Lukman Wijaya (Stephen Lo), the CEO of PT Garland International Indonesia (a company dealing in coal mining and export) and the CEO of PT Bulirpadi Lintas Nusantara (a company dealing in coffee and garlic plantation, and garlic import, coffee import).


    The Asiamet Board takes its role very seriously with respect to governance oversight and operating with a corporate culture and values that are consistent with industry good practice.

    As such the Board is disappointed to receive this notice without any strategic rationale, explanation or justification from the Company's largest shareholder. Asiamet recently terminated a binding sale and purchase agreement signed on 24 December 2020 with PT WIN, a company controlled by Aeturnum Energy, following a material breach of its obligations under a binding SPA.

    In response to the proposed resolutions detailed, Asiamet provides the following comments:

    Resolution 1 - the current Board of directors have and will always serve the best interests of its shareholders and there is no justifiable rationale for the removal of any of the current directors. Current Directors have invested materially in the Company and over the past five years overseen significant advancement of the BKM copper project from discovery stage, through resource and reserve definition, completion of feasibility studies, materially advanced permitting and completed initial value enhancement engineering. The Asiamet Board has a proven track record as mine discoverers and builders across the sector. The Asiamet Board of Directors is of the view that the value of the Company and its copper assets are currently being undermined by the actions of a third party acting for their own benefit and at the expense of all other shareholders.

    Resolution 2 - the current Chief Financial Officer is unaware of any such request to be nominated as Interim Chairman of the Company. As a result, this resolution cannot be voted on as the proposed nominee is unaware of the proposal, and in any case has advised the Board that he would not accept such a nomination.

    Resolution 3 - the Company has a top tier internationally accredited firm as its independent auditor for the Asiamet group of companies. All financial audits have been conducted without need for material misstatement or qualification from the auditors. In fact, the Board Audit Committee has received positive feedback from the auditors with respect to business process, governance and compliance standards implemented across the Asiamet Group.

    Resolution 4 - the directors proposed to replace the existing Asiamet Board lack the relevant background or experience to manage a listed base and precious metals development and mining business, nor do they have any apparent experience to provide the governance oversight required of an AIM listed public company.

    The experience, background and professional credentials of the current Board is clearly distinguishable compared with the proposal from the Company's largest shareholder and the removal of the current board would undermine the principles of good governance and accountability to shareholders.


    Tony Manini, Executive Chairman of Asiamet Resources commented

    "The Asiamet Board finds the actions of Aeturnum Energy to be highly unusual and unprofessional. When a 19.98% shareholder is seeking to convene a Special General Meeting of shareholders to remove the current Board of Directors without justification or explanation, and immediately after one of its controlled entities has materially breached a binding sales and purchase agreement to acquire one of the Company's primary assets, its motivations for not fulfilling its obligations under that binding agreement need to be questioned. The Asiamet Board is of the view that Aeturnum Energy through its investment in Asiamet is now attempting to secure control over the Company's valuable copper assets by removing the current Board of Directors and replacing them with its own nominees. The Asiamet Board and management find this behaviour totally unacceptable and contrary to all principles of good business practice and governance. The Board will keep shareholders informed and further announcements will be made in due course."
     
  5. Groucho

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    25 February 2021 - Asiamet Resources Limited, (AIM: ARS) (the "Company"), is pleased to announce a conditional fundraising ("Fundraising") to raise up to an aggregate gross amount of £10m, comprising :

    - a placing of up to 440,909,090 new common shares of par value US$0.01 each in the Company (the "Placing Shares") at a price of 2.2 pence per Placing Share (the "Issue Price") (together the "Placing") which is comprised of:

    o a placing of 395,454,545 Placing Shares at the Issue Price to raise up to approximately £8.7 million (approximately US$12.2 million); and

    o through an accelerated bookbuilding process, a placing of an additional 45,454,545 Placing Shares at the Issue Price to raise up to approximately £1.0 million (approximately US$1.4 million.

    - a subscription ("Subscription") of 16,529,658 new common shares of par value US$0.01 each in the Company (the "Subscription Shares") at a price of 2.2 pence per Subscription Share.


    The net proceeds from the Placing and Subscription will primarily be used to:

    · Complete a second phase value engineering programme for the proposed 25ktpa BKM copper project ("BKM"), located in Central Kalimantan, which will include metallurgical and process flowsheet optimisation together with associated operating and capital costs refinement;

    · Commence the early stage detailed engineering and design works for the BKM copper project;

    · Finalise the key Pinjam Pakai permit (borrow to use) with the forestry department and secure supplementary permits for construction and commencement of operations;

    · Secure project financing for construction of the BKM copper mine through a combination of debt / equity and offtake/equipment finance. The Company will also consider an IPO on the Indonesian Stock Exchange and/or a partial asset sale as part of securing the required equity finance;

    · Drill test a number of high probability copper targets in close proximity to the BKM copper development project which have the potential to add further resources and mine life to the BKM project;

    · Continue community engagement and development work on the Beutong IUP host to Asiamet's large tonnage porphyry copper-gold deposit

    · Drilling to test the potential for a high grade extension of the Beutong Cu-Au deposit to depth


    The Placing is being conducted in two parts:

    1. by way of a firm placing of 395,454,545 Placing Shares at the Issue Price to raise a gross amount of up to approximately £8.7 million (approximately US$12.2 million) ("Firm Placing") with institutional and other investors. The Firm Placing has been completed by Optiva conditional on Admission; and

    2. through an accelerated bookbuilding process under which up to an additional 45,454,545 Placing Shares are being offered at the Issue Price to raise a gross amount of up to approximately £1.0 million (approximately US$1.4 million) (the "Accelerated Bookbuild") which will be launched immediately following the release of this announcement (the "Announcement") and which is expected to close no later than 7.30 pm (GMT) today. For further details please contact Christian Dennis on +44 203 137 1903 or christian.dennis@optivasecurities.com



    The Company has appointed Optiva Securities Limited ("Optiva") as sole bookrunner.

    The Company has also completed the Subscription, conditionally on Admission, under which up to 16,529,658 Subscription Shares have been subscribed at the Issue Price to raise a gross amount of approximately £0.36 million (approximately US$0.5 million).

    The net proceeds of the Placing and Subscription are expected to be utilised as follows:

    o US$1.1 million for completing the BKM Value Engineering programme;

    o US$1.7 million for drilling of high priority targets in close proximity to the BKM copper development project;

    o US$1.0 million for permitting for the BKM copper project including securing the Pinjam Pakai (borrow to use) permit from the forestry department along with secondary permits;

    o US$1.6 million for drilling to test the potential for high grade extensions of the Beutong Cu-Au deposit at depth; and

    o US$6.5 million for general working capital purposes and progressing the project financing, and to cover expenses associated with the Placing.


    The Issue Price of 2.2 pence per Placing Share and per Subscription Share represents an 8.3% discount to the closing share price on 24 February 2021 (being the latest practicable date prior to publication of this Announcement).

    Certain Directors have indicated an intention to participate in the Placing. Tony Manini, a Director and Executive Chairman of the Company, Dominic Heaton, a Non-Executive Director of the Company and Peter Pollard, a Non-Executive Director of the Company, have agreed to subscribe for 5,620,567 Subscription Shares at the Issue Price.


    Tony Manini, Executive Chairman of Asiamet, commented:

    "The overwhelmingly strong response from institutional investors coupled with large retail demand through the accelerated bookbuild sees this capital raising heavily oversubscribed and strongly positions the Company to deliver on its key objectives for 2021and beyond.

    Asiamet has been progressively developing its portfolio of high quality copper projects over the past few years and is now very well positioned to take advantage of a highly favourable macroenvironment for copper and substantially higher copper prices going forward.

    The Company's BKM and Beutong projects contain over 3 million tonnes of copper in JORC compliant Resources and Reserves and the potential to further grow the resource base on both properties remains very high.

    Our BKM project is a rare advanced stage copper development opportunity with a high-quality feasibility study that demonstrates a strong production and cashflow profile. Significant scope exists for further enhancing project economics through the successful delivery of current value engineering works and further exploration to add mine life. Completing these programs, finalising permitting for mine development and securing a project financing package to advance BKM to construction ready are key value driving priorities for the Company this year.

    We are particularly excited to also have the opportunity to re-commence drilling activities on both of our projects. Multiple high probability copper targets identified in the immediate proximity of BKM will be tested and later in the year we anticipate drilling some deeper holes at Beutong to evaluate the potential for a world class, high grade porphyry copper-gold deposit at depth.

    Solid news flow is anticipated from BKM value engineering works, a further update to project economics, achieving permitting milestones, drilling of high potential copper targets nearby BKM and project financing workstreams. Further drilling and development partnering initiatives at Beutong are planned to bring the project back onto the radar of strategic investors. With a strong balance sheet now in place we are confident of delivering very significant value for stakeholders through these initiatives during the course of 2021 and look forward to updating the market with regular updates as we progress"


    The Placing

    The Placing is being conducted by way of a firm placing of Placing Shares with institutional and other investors which has been completed by Optiva conditional on Admission, and in addition an Accelerated Bookbuild led by Optiva as sole bookrunner.

    The Placing is being conducted under existing authorities to allot shares and as such there is no requirement for shareholder approval at a general meeting.

    The Company has today entered into the Placing Agreement with Optiva which contains customary terms and conditions. Pursuant to the Placing Agreement, Optiva has conditionally agreed, as agent for the Company, to use its reasonable endeavours to procure Placees for the Placing Shares at the Issue Price.

    Your attention is drawn to the detailed terms and conditions of the Placing described in the Appendix to this Announcement (which forms part of this Announcement).

    The book for the Accelerated Bookbuild will open with immediate effect. The book is expected to close no later than 7.30p.m. (GMT) today. The timing of the closing of the book and the making of allocations may be accelerated or delayed at Optiva's sole discretion. The Appendix to this Announcement contains the detailed terms and conditions of the Placing and the basis on which investors may participate in the Accelerated Bookbuild. Terms defined in the Appendix shall have the same meaning in this Announcement. The Placing is not being underwritten by Optiva. Details of the number of Placing Shares conditionally placed with institutional and other investors pursuant to the Placing, and gross proceeds, will be announced as soon as practicable after the close of the Accelerated Bookbuild.

    Qualifying investors who are invited, and who choose, to participate in the Accelerated Bookbuild by making an oral and legally binding offer to acquire Placing Shares, will be deemed to have read and understood this Announcement in its entirety, including the Appendix, and to be making such offer on the terms and subject to the conditions contained herein and to be making the representations, warranties, undertakings and acknowledgements contained in the Appendix to this Announcement.

    The Placing Shares will be issued credited as fully paid and will rank pari passu with the Existing Common Shares, including the right to receive all dividends and other distributions (if any) declared, made or paid on or in respect of such shares after Admission in respect of Common Shares and will otherwise rank on Admission pari passu in all respects with the Existing Shares.


    Admission

    An application will be made for the Placing Shares and the Subscription Shares to be admitted to trading on AIM and it is expected that such admission will become effective and trading will commence in the Placing Shares and Subscription Shares on 5 March 2021. The exact number of shares to be admitted will be advised in a further announcement following the completion of the Accelerated Bookbuild.
     
  8. Groucho

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    22 March 2021


    Positive Results from Metallurgical Value Enhancement Work


    Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to report on the results from metallurgical test work undertaken as part of value enhancement initiatives for the BKM copper project located in Central Kalimantan, Indonesia. Results from the work completed to date are highly promising and indicate significant potential benefits from a concentrate tank leach process flowsheet verses heap leach processing as per the 2019 feasibility study.


    Key highlights:

    Use of a concentrate tank leach process has potential to:

    · Increase total copper recoveries by up to 40% on a relative basis.

    · Maintain copper production at full capacity of 25Ktpa for a full 8 years, exclusive of any further exploration and resource conversion.

    · Further enhance current robust project economics via earlier copper production and significantly stronger life of mine cash flow.

    · Produce a secondary pyrite concentrate for sale into the Indonesian laterite nickel industry.


    One of the key value enhancement initiatives identified in the 2019 BKM Feasibility study was to further increase the value of the BKM copper project through improved metallurgical recovery and process/mine flowsheet optimisation coupled with a review of capital and operating costs. The 2019 feasibility study assumed a conventional heap leach and solvent extraction-electrowinning process
    (SX-EW) delivering ~172kt of copper from 303kt of contained copper in current Ore Reserves, resulting in a 51% recovery of total copper. The metallurgical value enhancement work has investigated the use of a concentrate-tank leaching option that increases overall total copper recoveries to greater than 70%, a relative improvement of approximately 40% over the 2019 feasibility study results.

    The assessed tank leaching option involves a conventional crushing, grinding, and froth flotation of the BKM ore to produce a copper-pyrite concentrate. A fraction of the concentrate is fed through a small autoclave for conditioning, and then recombined with the bulk of the concentrate in an atmospheric tank leach process. The leached copper, after an appropriate solid-liquid separation process, is recovered via conventional SX-EW to produce LME Grade-A copper cathode. The assessed flowsheet is similar to that used in other highly successful copper tank leach operations such as Sepon in Laos. Other advantages of the concentrate tank leach process include:

    · A significant reduction in residence time to achieve higher copper recoveries i.e. 48 hours processing cycle time compared to circa 300 days to recover approximately 80% of the soluble copper (50% of the total copper) from the heap leach as reported in the 2019 Feasibility Study.

    · Increase in the number of years operating at full capacity of 25ktpa contributing to greater life of mine copper production.

    · Extension of the life of mine from 9 to 11 years before conversion of existing Inferred Resources and the discovery of additional resources through exploration.

    · A smaller project footprint resulting in reduced costs associated with earthworks and lower environmental impact.

    · A processing plant suitable for future processing of sulphide resources already identified on the KSK Contract of Work, when they become better defined.

    · The potential to recover a saleable pyrite concentrate for the Indonesian HPAL nickel market.


    A detailed review of capital and operating costs is still required to fully ascertain the economic benefits of a concentrate tank leach process and this work, along with further detailed flowsheet design and associated mining studies, will be the subject of the next phase of work commencing immediately.

    Initial desktop review of operating costs suggests a marginally higher cost base with the inclusion of grinding, flotation, tank leaching and tailings management, however the project team led by Andrew Neale are investigating ways to minimise these impacts through a number of initiatives around power supply and overall mining costs. Capital cost estimates for the tank leach option also requires detailed assessment. Initial analysis indicates that the cost of additional processing equipment and tailings can be largely offset by a reduction in capital costs associated with the extensive civil works required for the heap leach pad and associated treatment ponds. Environmental impacts associated with the concentrate tank leach option are also significantly reduced due to a smaller overall site footprint. The environmental and economic benefit of a smaller site footprint will be further quantified in the next phase of value enhancement work.


    Tony Manini, Executive Chairman of Asiamet Resources commented

    Asiamet is very pleased with the outcomes of the metallurgical value enhancement work completed to date. While we still have further work to do to refine the process flowsheet and fully assess the capital and operating costs, the opportunity to recover significantly more copper, faster from the same volume of material clearly has the potential to significantly improve the already strong project economics. Cashflows come earlier and faster, production is maintained at full capacity for longer and more copper is produced over the life of mine. These benefits together with a reduced environmental footprint would all serve to enhance the robustness of the project as we enter the final stages of permitting and commence the process of engaging debt and equity providers for project financing. We look forward to reporting further on this important piece of work as it continues simultaneous with project financing activities and additional drilling to further expand resources and mine life.
     
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    27 April 2021


    Asiamet Appoints GM - KSK Project. Project Development Activities Ramping Up


    Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to announce the appointment of Andrew Neale as General Manager for the KSK Project and to provide an update on the various workstreams underway on the BKM copper development ("BKM") project located in Central Kalimantan, Indonesia.


    Highlights

    · Andrew Neale, a highly experienced metallurgist with extensive experience in studies, mine design, construction and operations. He has worked on numerous copper and gold projects in Indonesia and globally with Freeport McMoran, Merdeka Copper Gold and Bumi Resources. Andrew is based in Jakarta and will manage all aspects of the pre-development technical works and permitting required to prepare the BKM project for construction and operations.

    · NewPro Consulting and Engineering Services Pty Ltd based in Perth, Australia have been retained to complete an assessment of capital and operating cost estimates for an alternate concentrate - tank leach process flowsheet (refer press release 22 March 2021). NewPro are working together with the developers of the Galvanox® tank leaching technology to evaluate a similar process to that which has been used very successfully at the Sepon Copper Mine in Laos over the past 15 years.

    A number of pre-development workstreams are underway or commencing shortly as part of the on-going value enhancement works including:

    · Updating capital and operating cost estimates for the 2019 BKM feasibility study in preparation for debt financing discussions

    · Review of all opportunities to reduce the life-of-mine power costs (estimated to be 20% of overall costs). Discussions have been initiated with:

    · potential suppliers of natural gas to the project site

    · designers and constructers of gas pipelines, and

    · suppliers of modular on-site gas-turbine power plants.

    Discussions have also been initiated with third parties interested in financing the supply of power as a stand-alone project, separate from the mining and processing operations. This will determine the best overall option for power supply to the project.

    · Assessment of long-term tailings and waste rock management options with a view to significantly reducing the project footprint, environmental impacts and cost. PT Ground Risk Management and PT Lorax Indonesia have been engaged on the geotechnical and environmental impacts respectively.

    · Additional drilling aimed at adding mining inventory to the BKM copper deposit. Confirming the potential to maintain full production of 25ktpa copper for 10+ years will significantly benefit the debt carrying capacity of the project in the project financing. A ground-based geophysical program comprising approximately 30 line-kilometres of ground-based IP (Induced Polarization) will also be completed to better define and extend several of the high potential drill targets in the near vicinity of the BKM copper deposit prior to drilling. Preparations for the geophysics and drilling are well advanced and expected to commence in early June 2021.


    Project Economics and Financing

    The 2019 feasibility study was prepared with a long-term consensus copper price of $3.30/lb delivering an NPV8 $125 million and an IRR of 19.1%. Applying a range of long term copper price sensitivities to the 2019 study parameters clearly demonstrates the upside potential to price prior to completing the value enhancement works.
    Screenshot_20210427-072512_Vox Markets.jpg
    On the project financing front, a small group of interested parties have commenced diligence and discussions with the Company and an update will be provided as these discussions progress to a logical conclusion. Asiamet is also evaluating the potential to list its local operating subsidiary on the Indonesian Stock Exchange and discussions with Investment Banks and professional firms in Indonesia are being initiated.

    Simultaneous with the above equity financing initiatives, the Company is progressively updating its financial models with the new capital and operating cost inputs coming through the value enhancement works and commencing debt financing discussions with various financial institutions.


    Covid-19

    Covid 19 remains a very significant health issue in Indonesia and extensive restrictions remain in place to control its impact. The health and safety of our employees, contractors and all stakeholders is our highest priority at this time. Aligned with government guidance on the movement of its staff and contractors the Company continues to implement systems and protocols to reduce the potential for exposure to Covid 19 amongst its work force.


    Tony Manini, Executive Chairman of Asiamet Resources commented:

    "Asiamet formally welcomes Andrew Neale to the Company. Andrew is very well placed to lead the BKM copper development at our KSK project given his extensive background and experience in copper and gold in Indonesia and having managed the most recent value enhancement metallurgical studies for us. Despite the highly challenging operating environment resulting from Covid 19, we are very pleased with the progress being made both on the pre-development activities by Andrew and our Indonesian based team and corporately on the financing front. While a lot of work remains to be done as we transition Asiamet from an explorer to a copper mine developer and operator, the macro-environment for copper is a very positive tail wind which is being reflected in the level of investor interest we are seeing after five years of downturn. The value inherent in the BKM project is clearly demonstrated in copper price sensitivities applied to the 2019 feasibility study parameters and positive outcomes from the pre-production value enhancement works currently being progressed are expected to provide further significant upside to the project economics. We look forward to reporting further on this work and its impact on our project economics and financing activities over the course of 2021."
     
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    Crux Interview 29/04/2021
     
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  16. Groucho

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    24 May 2021


    2020 Annual Report & Financial Statements

    Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to present its audited financial statements for the 12 months ended 31 December 2020 ("Financial Statements") as extracted from the Company's 2020 Annual Report which is now available on the Company website at www.asiametresources.com and will be provided to shareholders who have requested a printed or electronic copy.

    The Financial Statements are set out below and should be read in conjunction with the 2020 Annual Report which contains the notes to the Financial Statements.

    All dollars in the report are US$ unless otherwise stated.

    2020 Financial and Operational Highlights Include:

    · Relocation of Head Office and Corporate function from Melbourne to Jakarta.

    · Capital placing raising gross proceeds of approximately $3.9 million completed in March 2020.

    · Final approval of the Further Exploration Permit for the KSK CoW received from Badan Koordinasi Penanaman Modal ("BKPM"), the investment co-ordinating body in Indonesia.

    · The Company signed a conditional binding Share and Purchase Agreement ("SPA") with PT Wasesa Indo Nusa ("PT WIN") in December 2020. This was subsequently terminated in January 2021 when PT WIN did not fulfil its obligations under the binding SPA.

    · Continuation of value enhancement activities for the BKM Project. Metallurgical test work completed during the year and in early 2021 confirmed the opportunity to revise the ore processing method which has the potential to increase life-of-mine copper recoveries by 40% on a relative basis.

    Key Subsequent Events Include:

    · Capital placing raising gross proceeds of approximately $14 million completed in February 2020.

    · Appointment of Eva Armila Djauhari as a Non-executive Director.
     
  17. Groucho

    Groucho Member

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    Last updated 10:51
    Asiamet Res Ltd - Business Update – BKM Copper Project
    1st June 2021, 09:50
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    RNS Number : 4114A
    Asiamet Resources Limited
    01 June 2021

    1 June 2021

    Business Update - BKM Copper Project


    Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to provide an update with respect to several key workstreams in progress at the BKM copper development project and the Kalimantan Suraya Kencana Contract of Work ("KSK CoW") located in Central Kalimantan, Indonesia.

    Highlights

    · Value Enhancement works related to transitioning the BKM copper mine development from a heap leach to tank leach processing route is making solid progress. Capex and Opex estimates expected in late July will be used as inputs to update the BKM project economics.

    · Options for direct shipping of high grade, high value polymetallic ore from the BKZ deposit is being investigated with commodity trading companies for potential offtake or smelter feed. Required metallurgy work will be undertaken from the upcoming drilling programme.

    · Field Activities - IP geophysical programme results due in July. Drilling high-priority targets for resource expansion proximal to BKM is planned to commence in June.

    · Permitting and Community Engagement - continued strong progress on permitting front, with conditional approval for key Pinjam Pakai Permit expected over the next 4-6 weeks.

    · Partner Discussions - BKM as one of few shovel ready copper projects in Asia is seeing strong interest from a number of Indonesian, Asian and US investors. Good progress is being made.


    Value Enhancement Activities

    Value engineering activities related to developing the BKM copper mine using tank leach processing (vs Heap Leach) is making solid progress. As part of this workstream, consultants NewPro engineering will review the capital and operating cost estimates for the project.

    Asiamet expects to receive the revised estimates by mid-late July 2021 and will then complete an update of the project economics. The project team led by Andrew Neale are also reviewing important initiatives related to logistics, reducing power and environmental costs.


    Field Activities - Drilling and IP Geophysics

    Field activities have commenced at site including mobilisation of drilling equipment and line cutting for a 30km Induced Polarisation (IP) geophysical survey. Drilling of high potential targets close to the planned BKM copper mine development is expected to commence in late June overseen by Chief Consulting Geologist, Pat Creenaune.

    The IP survey will allow the Company to better target its drilling in areas that are yet to be tested and increasing the probability of successfully adding to the existing mineral inventory. Results from the IP programme are expected in July, with drilling in those areas to commence once data has been assessed.

    Increasing the mineral inventory further de-risks the BKM copper project as part of the financing process through increased mine life, higher annual production and stronger support for the initial capital investment and any future expansion.


    BKZ High-Grade Polymetallic Zone - Direct Ship Ore

    The project team have been investigating the potential for producing a direct ship ore (DSO) from the near surface high grade polymetallic (Zinc, Lead, Silver +/- Gold and Copper) BKZ Resource, located approximately 800 metres north of the BKM copper Reserve.

    Initial discussions have been undertaken with various trading companies for a potential offtake or feed into a smelter or metals recovery plant. As part of this assessment, metallurgical testing to determine the processing characteristics of the BKZ mineralization will be undertaken from the upcoming drilling programme.

    Subject to the necessary permitting, the potential benefit of any DSO product is early cash flow generation and hence further significant de-risking of the BKM copper mine development. BKZ is a Polymetallic (Cu-Pb-Ag-Pb-Au) deposit located close to BKM that is zoned from an upper zinc-lead-silver+/- gold and copper to a lower copper-silver bearing deposit.

    The deposit is open in multiple directions and can be rapidly expanded with further drilling.


    Permitting / Community Engagement

    Permitting for the key Pinjam Pakai (Borrow-to-Use Forestry Permit) is making good progress through the Ministry of Environment and Forestry with conditional approval expected in late June/early July. This will be a significant milestone for the project and as it enables the first phases of development and construction to commence subject to meeting conditional requirements.

    Work on secondary permits continues to progress in accordance with the Company's timelines. Strong support from the local community is continuing as engagement programs for the BKM copper mine development are rolled out. This strong local level support greatly assists in the approvals, secondary permitting, and land acquisitions process.


    Partner Discussions

    With copper prices at multiyear highs underpinned by large infrastructure programs and a major transition to renewable energy underway, Asiamet is very well placed with one of a few shovel ready copper projects in Asia.

    As anticipated the Company has had significant inbound interest from a number Indonesian, Asian and US investors seeking to partner with the Company to develop the BKM project. Confidentiality agreements have been signed with a small number of serious investors and discussions are progressing well.


    Tony Manini, Executive Chairman of Asiamet Resources commented

    "As per our strategy, work has been progressing on a number of important value-adding workstreams simultaneously. Significant progress has been made by Andrew Neale's team on pre-development and value engineering work and we should soon have some updated capital and operating costs to enable us to evaluate the tank leach processing option for the BKM copper mine development.

    At the BKZ deposit immediately adjacent to BKM we have identified a very attractive high-grade, high value, zinc-lead-silver+/-copper and gold resource that presents as a DSO opportunity with the potential to generate early cashflow. We will be assessing this opportunity in tandem with the other value enhancement workstreams in progress. On the permitting front our highly capable Indonesian team expect to receive the key forestry permit shortly, a critical de-risking milestone for financing the development of the project.

    With copper prices at multiyear highs, the Company has had significant inbound interest from investors seeking to partner with us to develop the BKM copper project. Discussions are being progressed with a select number of groups who can bring substantial capability and value add to the BKM project financing and mine development.

    We have a lot of financing and development related activity in progress and are looking forward to updating our stakeholders as these important de-risking milestones materialise."
     

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