Asiamet Resources Ltd on Thursday said it had made significant financial and engineering progress regarding its feasibility stage BKM copper project in Central Kalimantan, Indonesia.

The London-based mineral exploration company focused on copper, gold and polymetallic assets in Indonesia said: ‘Positive engagement is continuing with the prospective lead bank credit committee approvals process’.

A submission for the lead bank credit committee to act as lead arranger for BKM’s debt financing will be undertaken in the new year.

Asiamet has also introduced the project to an unnamed ‘prominent Indonesian bank’, and says that the feedback has been positive. The company expects the BKM project to be strongly supported by Indonesian banks, given the country’s lack of energy transition metals projects at the financing stage.

The group has also advanced negotiations with ‘highly reputable’ Indonesian and Chinese engineering firms to help deliver the infrastructure needed for the BKM project. Commercial proposals have been received and Asiamet expects engineering works to commence in the first quarter of 2024.

The group has engaged an environmental consultant to update the project’s environmental and social impact assessment. This work is due to be completed in the first half of 2024.

Chief Executive Officer Darryn McClelland said: ‘Asiamet, with its corporate advisory partner Grant Samuel, have been actively engaged with a proposed lead bank to progress the requirements needed to achieve first stage credit approval for the project as early as possible in the New Year. Importantly, we have also formally introduced the BKM Copper project to a leading Indonesian bank with a view to progressing more detailed engagement early in 2024.’

Shares in Asiamet were untraded at 0.80 pence each in London on Thursday morning.

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