1 March 2024
Corporate
Update
Asiamet Resources Limited ("Asiamet"
or the "Company") announces updates in relation to the Company's
BKM copper cathode project in Central Kalimantan, Indonesia ("BKM"
or the "BKM Project") and its Beutong copper-gold porphyry project
in Aceh Indonesia ("Beutong").
Highlights
· Debt Finance
Process: Positive engagement with
Lead Bank continues, with financial modelling completed for BKM
Project financing. The Company has successfully closed out several
items from the Independent Technical Expert ("ITE") review, meeting
the requirements for the initial phase of approvals. The Company is
also actively engaged with a prominent Indonesian bank.
· Engineering Design &
Development Strategy: Finalising
partners for project execution and engaging partners for project
management support. Updates on partner appointments expected before
the end of Q1 2024.
· BKM Project
Optimisation: Evaluation of
alternative locations for the heap leach facility. Detailed
modelling of a new facility will commence in the near term with the
expected appointment of a dedicated heap leach design group. The
BKM Project execution model is being amended to reflect feedback
over the ITE and bank financing process.
· BKM Project
Permitting: Prioritising closure of
the final outstanding item required to obtain the forestry permit
to develop a mine at BKM. Additionally, awaiting release of the
environmental permit from Ministry of Environment for the limestone
resource drilling programme to the north of the BKM
Project.
· Power Supply for BKM
Project: Advancing Biomass Power
Station studies and financing options with turnkey power providers.
Study expected to be completed by the end of Q1 2024, with further
details on financing and technical partners to follow.
· Concentrate
Logistics: Evaluating truck and
barge configurations for cost optimisation. The Company has
received encouraging cost estimates from its scoping
study.
· Corporate
Development: Elevated interest in
the KSK and Beutong assets from multiple parties. The Company is
facilitating due diligence and site visits. Advanced, high-quality
copper and copper-gold assets in various stages of maturity are
rare in the Asian region and are appealing to investors seeking to
secure copper metal longer term.
Debt Finance
Process
Positive engagement continues with
the prospective Lead Bank, and financial modelling for BKM
project's financing base case has now been completed. The Company
has successfully closed out several items from the ITE review,
including providing additional information on the biomass power and
proposed project execution partners and construction contractors,
meeting the requirements for the initial phase of approvals.
Moreover, the Company is actively
engaged with a prominent Indonesian bank to join the financing
consortium, with planning for due diligence underway and further
announcements will be made, as appropriate.
Engineering Design &
Development Strategy
Feedback from ITE review process
highlighted the critical importance of early engagement of project
execution partners to achieve confidence in project delivery
outcomes. The Company is currently finalising the selection of
partners to support the engineering design, longer term procurement
and construction execution for the BKM Copper Project. During the
2023 feasibility update, the Company identified highly capable and
experienced local and regional companies which have clearly
demonstrated improved cost outcomes relative to other
providers.
Additionally, the Company is
engaging with partners capable of providing project management
support, such as Project Management Office services, ensuring that
project deliverables such as detailed baseline project schedules,
capex estimate updates and execution planning are established and
maintained.
These advancements highlight the
progress made in strengthening the project's execution team as the
Company advances the BKM Copper Project. A further update on the
appointment of both project execution and project management
partners will be provided as appointments are made.
BKM Project
Optimisation
Optimisation initiatives to enhance
the efficiency and cost-effectiveness of the BKM Project are
continuing throughout the financing process, including the
evaluation of alternative locations for building the heap leach
facility ("HLF"). Detailed modelling of an alternative and
significantly improved site has been identified within the current
mine. An updated layout and design will commence with the
appointment of a dedicated heap leach design consultant, which will
be announced in the near term.
Furthermore, optimisation works
extend to reviewing the project delivery model for BKM which will
encompass various aspects such as engineering resources, operating
and capital costs, and strategic sourcing of key supplies. An
example of the optimisation works delivering significant value to
the BKM Project is the recent review of site access road earthworks
and local equipment hire costs, which indicate potentially
significant savings relative to previous estimates.
BKM Project
Permitting
There remains one outstanding
requirement for the issuance of the Company's forestry change of
land use permit (PPKH) by the Indonesian Ministry of Environment
and Forestry Department, being the preliminary agreement on the
shared use of the forestry access road to the BKM site. The Company
has completed all other necessary requirements, including obtaining
the Governor's Recommendation following satisfaction of various
environmental, technical, financial, and community development
needs, as well as completing the revised environmental and social
impact assessment (AMDAL) The Company is currently
prioritising the completion of this final remaining
requirement.
Additionally, the Company is
awaiting the final release of an environmental permit to commence a
limestone resource definition drilling programme in the Rinjen area
immediately to the north of the BKM Project. Securing a local
limestone supply for use in controlling heap leach chemistry will
be a major operating cost benefit for BKM.
Power Supply for BKM
Project
The Company is in the process of
finalising arrangements with financing and technical partners for
the Biomass Power Station for the BKM Project.
Supporting studies are focused on
assessing various factors, including the availability of Palm Oil
waste (which will be used as a Biomass source) within close
proximity of the site, considerations regarding the optimal
location for the power station and capital and operating cost trade
off studies. This work assessing the physical and financial
viability of utilising biomass for power generation at BKM is
expected to be completed by the end of Q1 2024.
Details relating to the funding and
technical model will be announced once complete.
Concentrate
Logistics
An internal scoping study has been
concluded on the combined truck and river barge haulage of pyrite
concentrate, used to produce acid for the expanding nickel industry
in Indonesia. The feed to produce the pyrite concentrate would be
from BKM's primary copper resource and spent heap leach ore.
Given the location of the BKM site relative to where the
emerging nickel high pressure acid leach ("HPAL") facilities are
likely to be located, understanding the transport and logistics
requirement is crucial to ensure project
viability.
Following further review by an
external local specialist consultant, it has been identified that
significant improvements in transport costs can be achieved by
increasing the proposed transport barge size. The Company is
currently evaluating various combinations of truck and barge
configurations to refine costs and optimise the concentrate product
transport logistics.
Corporate
Development
Strong in-bound interest continues
to be evaluated by the Corporate Development team, with potential
project level investment in either its KSK or Beutong licences, or
potentially both. From late 2023 and into 2024, extensive due
diligence processes have been underway, including a data room
review and more recently site visits by several interested parties.
To solve for the project funding
requirement for the development of the BKM Project, the Company is
evaluating a potential divestment of part or all of either project.
The introduction of a partner at the project level has
ancillary benefits associated with the development of the project
and operations of the mine.
Furthermore, ongoing disruptions in
the copper market, coupled with the imperative to meet global
energy transition requirements are attracting increased investor
interest in Asiamet's portfolio and assets. The Company's
high-quality copper projects are poised for development and
production as copper demand is accelerating.
Potential investors recognise the
significant time and investment the Company has made to establish
its Mineral Resources and Ore Reserves, the completion of
Feasibility Studies and its advancement of a sustainable
development platform through a range of Community Development and
ESG initiatives. This represents a compelling investment
opportunity for interested parties to fast track a new mine
development into production.
Together with its corporate
advisors, Grant Samual and Zenith Capital, the Company continues to
advance its Corporate Development activities. Asiamet remains
committed to maximising value for shareholders through strategic
partnerships and corporate initiatives to secure the debt and
equity financing required to build the BKM Project.
Darryn McClelland, Chief
Executive Officer, commented:
"It has been an extremely busy start to 2024 and the Asiamet
team has been fully engaged in advancing critical
operational, project financing, and corporate development
initiatives. Notably, significant milestones have been met in the
project financing process, with successful completion of bank
financial modelling and meeting key requirements in the bank
approvals process. Across various operational fronts we have also
seen very considerable progress.
In
our strategy for engineering, procurement and construction
workstreams, we have prioritised early engagement with project
execution partners, a move aimed at enhancing project delivery
efficiency. Details regarding the appointments of BKM's delivery
partners will be made over the next few weeks and prior to the end
of Q1 2024.
Additionally, we also anticipate completing the Biomass Power
Station study by the end of Q1 2024. As with any mining project,
securing a power source is paramount, and the proposed renewable
energy source of Biomass Power Station would also enhance the
environmental sustainability of the BKM project. The Company is
particularly encouraged by substantial interest from potential
partners in financing the power plant, and we look forward to
sharing further details in due course.
On
the corporate development front, we are experiencing elevated
levels of new interest in both our KSK and Beutong assets. Data
room due diligence processes and site visits for multiple parties
are currently being facilitated.
When considering the forecast dynamics of the copper market
fuelled by the escalating demand for electrification, our Company's
assets are cornerstones of strategic value, comprising advanced
projects endowed with high-quality resources/reserves and a path
forward to production. Furthermore, our projects hold the potential
of diversifying revenue streams through the extraction of other
base and precious metals upon reaching full development. The Board
and management remain highly committed to delivering value from our
asset base for all stakeholders."
ON
BEHALF OF THE BOARD OF DIRECTORS
Darryn McClelland, Chief Executive
Officer
-Ends-
For further information, please
contact:
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.sethi@flowcomms.com /
info@asiametresources.com
Nominated & Financial Adviser
Strand Hanson Limited
James Spinney / James Dance / Rob
Patrick
Telephone: +44 20 7409
3494
Email: asiamet@strandhanson.co.uk
Broker
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.