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(Alliance News) - Asiamet Resources Ltd on Friday reassured shareholders it is in a "sound financial position" following claims made against its major shareholder Aeturnum Energy PTE Ltd.
Bloomberg on Friday reported Aeturnum Energy, a Singapore based commodities trading company, is being sued by French bank Natixis over oil contracts worth USD86 million.
Asiamet responded Friday saying it continues to operate on a "business as usual" basis.
"Our in-country team remains fully engaged in various permitting and value enhancement activities that continue to advance the BKM copper project towards development," Asiamet added.
Aeturnum acquired a 19.9% holding in Asiamet through a placement in March and was provided with an exclusivity period of 60 days to complete technical and commercial due diligence for a project level investment in Kalimantan Surya Kencana.
The KSK contract of work is wholly-owned by Asiamet and is located northwest of Palangkaraya, the regional capital of Central Kalimantan, Indonesia. The KSK license covers around 390 square kilometres.
Asiamet was informed in mid-May that Aeturnum had finalised all due diligence workstreams and intended to enter into negotiations for a partial or full acquisition of the KSK contract of work.
In a statement Friday, Asiamet said: "Negotiations with Aeturnum in relation to a majority position in the KSK contract of work located in Central Kalimantan, Indonesia are making good progress with both parties remaining fully engaged and committed to a successful outcome that benefits all stakeholders.
"Asiamet looks forward to continuing to keep stakeholders up to date on all aspects of its business activities as it advances the BKM copper project towards development into a rising copper market."
Shares in Asiament Resources were down 7.2% in London on Friday afternoon at 2.64 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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