Asiamet Resources Ltd on Friday updated shareholders on the latest progress at the BKM copper project in central Kalimantan, Indonesia, having made positive steps towards financing the project.
Asiamet Resources, a Jakarta, Indonesia-based mining company said that independent technical expert SRK Consulting Perth is finalising its review report after a site visit at BKM. It said positive feedback was provided by the expert on various items raised in previous project reviews.
It also received an indicative term sheet from a ‘leading international metals trading group’ for financing tied to copper cathode offtake. This follows detailed due diligence, and is in line with typical prepayment financing arrangements, the firm said.
Further, Asiamet Resources added it ‘is in discussions with several other commodity trading groups who remain engaged in due diligence for similar prepayment financing options. The company will negotiate terms with the preferred prepayment financier.’
Chief Executive Officer Darryn McClelland said: ‘This is a critical step in moving forward with the process to secure bank financing for BKM. It is encouraging also to report receipt of an indicative term sheet for copper cathode offtake finance from an internationally recognised metals trading group. Whilst preliminary, and subject to various conditions precedent, this represents a significant step forward in the overall financing journey. Offtake finance remains a key part of the overall project finance package bringing considerable benefits for both the project and shareholders.’
It added that it continues to engage with several Chinese engineering, procurement and construction and other EPC management groups that are active in Indonesia, and notes that talks are progressing well.
Asiamet also said it had been approached by ‘several interested Asian companies’ looking to advance the BKM copper project, or make a direct investment in the project/company. It is ‘actively pursuing’ these opportunities.
Asiamet Resources shares rose 10% to 1.02 pence each on Friday morning in London.
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