Copper explorer Asiamet (LON:ARS, CVE:ARS) is to raise £1mln through a private placing to complete a preliminary economic assessment of its BKM copper deposit in Indonesia.
The placing, at 1.4p, has already been fully subscribed by a combination of existing shareholders and other investors.
A recent resource upgrade at BKM showed total contained copper increased by 43% to 887mln pounds, or 402,000 tonnes, with some 26% now in the higher confidence indicated category.
Brokers have suggested this is enough for a low cost mine that could support annual output of around 20,000 tonnes a year.
As well as completion of the PEA, the money raised will help Asiamet convert its Beutong and Jelai properties from exploration to mining licences.
Tony Manini, Asiamet’s chief executive, said he was delighted with the strong shareholder backing.
“Having recently completed the resource update for BKM the focus of our work immediately moves to the PEA which is expected to be completed in early 2016.”
Broker VSA said: "The PEA is as previously highlighted, the next major milestone for ARS and we expect the findings to confirm the potential for a long life, low cost copper project.
"We have adjusted our target price down by 12.5% to 3.5p to reflect the additional shares."
Asiamet shares dipped today 5% to 1.425p.