TIDMARS
RNS Number : 6312I
Asiamet Resources Limited
08 August 2023
08 August 2023
Corporate Update - Project Financing
Asiamet Resources Limited ("Asiamet", "ARS" or "the Company") is
pleased to report that considerable progress is being made across
all project financing workstreams for the development of the
Company's wholly owned, feasibility stage, BKM copper mine project
located in Central Kalimantan, Indonesia. Senior bank debt and
offtake finance engagements which represent potentially large
components of the proposed BKM mine development capital structure
are progressing well.
Highlights
-- Following consultation with potential lead banks for BKM debt
finance, ARS appointed SRK Consulting (Perth) ("SRK") as
Independent Technical Expert ("ITE"). SRK also reviewed the 2019
feasibility study in 2022 providing important input into
workstreams addressed in recent feasibility study update.
-- Two separate due diligence visits to the BKM project site
were completed by a potential lead bank and the ITE over the past
three weeks.
-- Several leading international metals trading groups are
undertaking detailed due diligence for financing tied to copper
cathode offtake.
-- Growing interest from Chinese Engineering, Procurement and
Construction ("EPC") contractors and proposed project partners
introduced through China based advisor, Zenith Capital. Engagement
with Indonesian EPC and Engineering, Procurement, Construction and
Management ("EPCM") groups has also commenced.
-- Preparation for early engineering design works is underway
with specialist engineering contractors and equipment
suppliers.
-- Grant Samuel, Australasia's leading independent corporate
advisor, is engaging with a potential lead financier and supporting
ARS to finalise its financing model and prepare related valuation
metrics.
Due diligence site visits to the BKM copper project have
recently been completed by a globally recognised bank experienced
in resource project financing and the bank-ratified ITE, SRK. These
site visits are an important step in the due diligence process
required for first phase bank credit approval, which is targeted
for completion before the end of this calendar year.
Simultaneously, there is an escalating interest in securing the
copper cathode off-take for the BKM project. Several leading
international metals trading groups are advancing their due
diligence to provide indicative term sheets for pre-payment
financing tied to copper cathode off-take.
In parallel with the debt financing, engagement with parties
introduced by our China based advisors, Zenith Capital, has also
been very positive with several discussions ongoing for a range of
financing models which will support the development of the BKM
project. These include various forms of equipment and EPC related
finance.
Darryn McClelland, Chief Executive Officer commented:
We are pleased to report that progress on the BKM Copper Project
financing is accelerating. Representatives of both a potential lead
finance bank and the appointed Independent Technical Expert, SRK
Consulting, recently completed visits to Central Kalimantan and the
proposed BKM mine development site as part of their due diligence
processes. Visits to the Company's drill core storage facility,
which houses all drill core from across the entire KSK contract of
work, enhanced the project's credibility and provided an
opportunity to demonstrate the considerable upside potential of
KSK. A key outcome of the site visits was the establishment of the
financiers' expectations for engagement of project execution
contractors. Considerable engagement is continuing with both
parties targeting completion of all requirements for first stage
credit approvals before the end of this year.
Simultaneously with the work on the senior debt financing
several other financing workstreams are being advanced. Detailed
discussions are in progress with several globally recognised metals
trading groups interested in securing copper offtake linked to an
upfront pre-payment. Offtake finance is expected cover a sizeable
portion of the overall project finance, which would bring
considerable benefits for both the project and shareholders.
Additionally, early engagement with parties introduced by our
China advisors, Zenith Capital, has also been positive. Several
different project financing models involving the supply of
equipment and/or construction services as well as partnering to
financially support development of the project are being
discussed.
The outlook for copper remains very robust, with medium to long
term demand forecast to remain strong and the supply-side response
challenged to meet this growing demand. New copper projects are few
and far between and the BKM copper heap leach project is
strategically positioned to deliver LME grade A copper cathode into
a supply constrained Asian market.
Asiamet is progressing the financing process and driving the BKM
Copper Project towards a successful development as quickly as
possible. We are grateful for the continued support of investors
and stakeholders through this period and will keep the market
informed with regular updates on our progress."
BKM Copper Project Site Visit
Site visits were recently completed by a potential lead
financier ("PLF") and the bank ratified ITE, SRK. The site visit by
the PLF is an important step in the due diligence process required
for first phase credit approval targeting to be completed before
the end of this year. The site visit for both the PLF and ITE
included the following key areas:
-- An overview of the logistics route, travel from Palangkaraya
to site, and assessing some of the to be developed access
roads.
-- An inspection of proposed locations of various site
facilities, most notably the BKM Mining Area.
-- An overview of the geology and visit to the core storage facility near Palangkaraya.
-- Various discussions on all aspects of the BKM project feasibility study update.
-- A presentation on community engagement and ESG development provided to the PLF.
-- Meetings with lead contributors on BKM open pit geotechnical and hydrogeology studies.
It is envisaged the PLF will work together with top tier
Indonesian banks on the overall debt financing package for the BKM
copper project.
Grant Samuel, Australasia's leading independent corporate
advisor, is supporting Asiamet on the various financial workstreams
and engagements. Photos from the two recent project finance related
site visits are provided below.
Photo 1: Potential lead bank representatives at the BKM site
with Asiamet KSK project team.
Photo 2: Potential lead bank representatives inspecting drill
core at the KSK Core Storage Facility.
Photo 3: BKM Core Inspection with representative of Independent
Technical Expert, SRK Consulting.
ON BEHALF OF THE BOARD OF DIRECTORS
Darryn McClelland, Chief Executive Officer
For further information, please contact:
-Ends-
Darryn McClelland
Chief Executive Officer, Asiamet Resources Limited
Email: darryn.mcclelland@asiametresources.com
Tony Manini
Executive Chairman, Asiamet Resources Limited
Email: tony.manini@asiametresources.com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: Sasha@flowcomms.com / info@asiametresources.com
Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Stephen Allen
Telephone: +61 8 9480 2500
Email: Andrew.Thomson@rfcambrian.com /
Stephen.Allen@rfcambrian.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
Follow us on twitter @AsiametTweets
FORWARD-LOOKING STATEMENT
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; possible variations in ore grade or
recovery rates; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or
otherwise. Forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to the inherent uncertainty therein.
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END
UPDNKFBKOBKKOFK
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August 08, 2023 03:10 ET (07:10 GMT)
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