Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) confirmed, after hours on Friday, the closing of its $3.55 million equity raise, which included a retail offering of $260,000.
The retail offer followed a prior announcement earlier last week, concerning a $3 million subscription by major shareholder PT Delta Dunia Makmur Tbk, and an investment of US$295,000 from the board members and management.
The injection of funds will be used to finalise and optimise the BKM copper project, with a focus on significantly reducing the project’s initial construction capital cost.
Asiamet aims to reduce these upfront costs by US$50-$80 million from the US$235.4 million outlined in the 2023 feasibility study. The company has already identified US$26 million in savings.
“Asiamet is well-positioned to complete the final optimisation works for the BKM copper project and significantly advance financing for mine development,” chief executive Darryn McClelland said in a statement.
“The strategic imperative for the company is to continue to deliver on our core objectives as we move into what will be a transformative phase for the company.”
He added: “We look forward to updating the market with the results of the optimisation process before the end of the year and this will be the basis on which we head into financing discussions.
“We expect news flow to increase leading out of the engineering optimisation to drive sustained positive momentum for Asiamet as we move towards securing project financing."