(Alliance News) - Asiamet Resources Ltd on Tuesday said it has raised GBP1.8 million through a share placing to continue the development of the Beruang Kanan Main and Beutong projects, both in Indonesia.
The copper and gold miner said it issued 50.0 million shares at a price of 3.5 pence each. Asiamet shares were trading 12% higher on Tuesday in London at 3.88p each, giving it a market capitalisation of GBP40.6 million.
Following admission of the new shares, the company will have 1.10 billion shares overall.
Bruce Sheng, a director of Asiamet and chair of ASIPAC Group, participated in the placing through ASIPAC and agreed to subscribe for 3.4 million shares at the placing price, worth GBP118,009. After the transaction, Sheng holds a 6.7% stake in Asiamet.
"The completion of this financing allows us to commence a number of the more significant value enhancement initiatives identified in the BKM bankable feasibility study, including drilling some of the highest priority targets for additional copper resources located nearby the proposed BKM mine development," explained Chief Executive Peter Bird.
"We also plan to initiate a metallurgical test-work programme on samples from the upper parts of the Beutong deposit to test the amenability of the mineralisation for heap-leaching and hence the potential for alternative development options," Bird continued. "Progressing the permitting and funding options for BKM and Beutong continues to be a key focus of the management team and we look forward to providing regular updates on all workstreams as they are being progressed."