RE: ARS10 Oct 2020 23:13
This huge ÂŁ125m deal, for Asiamet - which is now unlocking huge value for shareholders.
Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to announce it has entered into a non-binding Heads of Agreement ("HoA") with PT Wasesa Indo Nusa ("PT WIN"), an Indonesian private company, to acquire Asiamet's wholly-owned subsidiary Indokal Limited ("Indokal") (the "Proposed Transaction"). Indokal holds the Kalimantan Surya Kencana Contract of Work ("KSK CoW"), including the BKM Copper Project, located in Central Kalimantan, Indonesia.
As part of the Proposed Transaction, PT WIN will also acquire Aeturnum Energy International PTE Limited's ("Aeturnum") commodities trading business. PT WIN plans to undertake an Initial Public Offering ("IPO") on the Indonesian Stock Exchange ("IDX") in early 2021. Discussions are currently underway with several highly rated Indonesian financial institutions to underwrite the IPO. With its existing cash reserves and expected proceeds from the planned IPO, PT WIN expects to have sufficient financial resources to enable the development pathway for the BKM Copper Project.
"The Asiamet Board fully endorses and supports this transaction. While it is recognised that there are still a number of steps to completion, the proposed transaction has the potential to unlock very significant unrecognised value for Asiamet shareholders and most importantly secures a clear road map for the funding and development of the BKM copper project and the further advancement of the wider KSK CoW for the benefit of all stakeholders. Asiamet will retain a very meaningful exposure to the upside at BKM and KSK and continue to manage all the value enhancement and development related activities currently in progress.
Our work with Aeturnum to date has provided an insight into their high level of professionalism and integrity and provided us with the confidence to pursue this transaction and partner with them as major shareholders in the proposed IDX listing and development of PT WIN going forward. We now remain focused on completing due diligence and binding documentation that allows for shareholder approval."