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(Alliance News) - Asiamet Resources Ltd on Monday said it will focus on securing a debt and equity finance package to develop its Beruang Kanan Main copper project following positive results from a recent feasibility study.
The Jakarta, Indonesia-based mining company said that for the remainder of this year it will focus on securing a debt and equity finance package for development of the BKM project in Kalimantan. It also will prioritise closing out various project optimisation opportunities, including site-based works if necessary.
Asiamet said it is in discussions with "several well-known and highly respected" parties who have expressed interest in securing copper cathode offtake from the BKM project. Some have commenced due diligence with a view to providing an indicative term sheet.
Asiamet previously had reported on May 10 that the feasibility study at BKM showed a post-tax net present value of USD162.8 million, and predicted USD1.4 billion in life of mine revenue.
The company said that since the study's release it has received "considerable inbound interest" from Chinese corporates, and has appointed China Zenith Capital Ltd to assist in securing financing options in China.
"Chinese investment in the Indonesian mining and processing industry remains very strong, supported by government-to-government bilateral relationships," Asiamet commented.
Asiamet said discussions with multiple potential lead banks for BKM's debt finance have "ramped up significantly" in recent weeks. Site visits by representatives from a potential lead bank, as well as the independent technical expert, are expected to take place in July.
Asiamet also said it has appointed Australian firm Grant Samuel Corporate Finance as its corporate advisor for the BKM project's finance 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," commented Asiamet's Chief Executive Officer Darryn McClelland.
"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 six months."
Shares in Asiamet were down 3.0% at 1.12 pence in London on Monday morning.
By Emma Curzon, Alliance News reporter
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