Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) has received a cash injection of US$3.3 million (£2.5 million), comprising a US$3.0 million subscription by major shareholder DOID topped up by US$0.295 million from directors and management.
Shares in the subscription will be issued at US$0.01 (approximately 0.77p) per share with DOID’s stake in the business increasing its 40.9% from 35.4%.
Net proceeds will be utilised to deliver the final pre-project financing milestones for the BKM copper project including cost-saving and optimisation studies.
“Completing these milestones will enable Asiamet to advance debt financing discussions for the BKM copper project with its preferred bank(s) and refine additional financing options such as offtake financing,” said the statement.
Darryn McClelland, chief executive, commented: "We recognise that our development journey has taken considerably longer than we had planned.
“This funding round allows us to complete the project optimisation this year and marks a pivotal final push to secure the financing required to take the project into the mine construction stage.
Given the strong fundamentals of the copper market and Asiamet's position as one of the very few companies with advanced copper development projects in Asia, we believe this is a critical moment that will unlock substantial value.
Ronald Sutardja, President Director of DOID, commented: "We continue to support Asiamet as it continues to advance the important BKM Copper project through the next stages of engineering and financing."
A retail offer is also underway through Bookbuild to raise up to a further US$0.78 million (£600,000) at the same price as the subscription.