Asiamet Resources Ltd (LON:ARS) says it's brought in around £2mln from a private placing to progress the feasibility study at its flagship BKM (Beruang Kanan Main) copper mine project as it continues to advance funding options.
The project is a 25,000tpa (tonnes per annum) heap leach copper mine in Indonesia.
Chief executive Tony Manini told investors: "Globally there are very few listed junior companies with a high quality development-ready copper project at a time when the copper market is widely predicted to move into a structural supply deficit over the next 2-3 years.
He added that the firm will therefore be very well positioned to take advantage of the forecast increase in copper prices, and a rising level of investor interest in gaining exposure to copper producers.
The firm is placing over 86mln shares at 2.3p via broker Optiva and existing shareholders. Shares closed Monday in London at 2.6p.
Manini said the last 18 months had seen significant progress, with excellent technical results received. The group is aiming to deliver the feasibility study in 2017.
Last month, the group reported excellent continuity of copper mineralisation from drilling at BKM with intercepts including 7meters at 2.54% copper and much of the mineralisation lying close to surface.
In September, it said feasibility drilling showed potentially stronger economics than the preliminary economic assessment had showed.
Manini said: "We look forward to building on the strong momentum established over the past year with a continued flow of news from the ongoing feasibility work program at BKM, strategic initiatives relating to partnering and funding, and from de-risking and advancing the Beutong and Jelai projects."