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Asiamet Resources shares up as JPMorgan Asset management to become cornerstone investor after £6mln placing

The AIM-listed miner said the net proceeds will be used to fund completion of the definitive feasibility study for the company's 100% owned flagship Beruang Kanan Main (BKM) project, drilling of high priority targets nearby BKM, and expansionary drilling at the Beutong Porphyry Project, JP Morgan Asset Management
Asiamet drilling rig
The placing shares represent, in aggregate, approximately 16.3%. of Asiamet's issued ordinary share capital as enlarged by the issue of offering

Asiamet Resources Limited (LON:ARS, CVE:ARS) shares rose in early trading on news JPMorgan Asset Management is to become a significant shareholder in the miner after subscribing to a placing of 139,534,884 new shares at a price of 4.3p each which will raise £6mln for the firm.

The AIM-listed miner said the net proceeds will be used to fund completion of the definitive feasibility study for the company's 100% owned flagship Beruang Kanan Main (BKM) project, drilling of high priority targets nearby BKM, and expansionary drilling at the Beutong Porphyry Project.

The placing price represents a discount of approximately 9.3% to Asiamet’s closing middle market price yesterday of 4.7p. In early trading this morning, AsiaMet shares were up 3.2% at 4.85p.

WATCH: Asiamet 'zooming along' towards completion of feasibility study at BKM

The placing shares represent, in aggregate, approximately 16.3% of Asiamet's issued ordinary share capital as enlarged by the offering.

JP Morgan Asset Management has agreed to subscribe for 71,010,118 placing shares, which give it a stake of approximately 8.31% in AsiaMet and thus make it a significant shareholder.

In addition, current significant shareholders Asipac Group Pty Ltd. and Namarong Investments Pty Ltd. have agreed to subscribe for 7,441,860 and 7,209,302 placing shares respectively, which will increase their holdings in AsiaMet to 4.9% and 4.25% respectively.

And Antony Manini, Asiamet’s executive chairman, Stephen Hughes, vice-president Exploration, and Faldi Ismail, a director of the company, have agreed to subscribe for 1,000,000, 418,605 and 283,395 shares respectively at the placing price.

Strong support testament to strength of projects

Peter Bird, Asiamet’s CEO commented: ”The strong support we have received from both large institutions and loyal retail investors in this capital raising is testament to the strength of our projects and team.”

He added: “With this backing we are now extremely pleased to be in a position where we can complete the BKM bankable feasibility study, test some of the high priority drill targets around BKM and re-commence expansion drilling of the exciting Beutong porphyry Cu-Au system.

“News flow will be strong and we look forward to keeping all stakeholders engaged as the momentum of our project work increases and results come to hand."

Optiva Securities Limited is acting as broker, and Natural Resources Global Capital Partners Limited is acting as financial adviser in connection with the placing.

The company has agreed to pay fees and expenses in connection with the placing amounting to, in aggregate, approximately £330,000.

 -- Releads, adds share price --

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