Asiamet Resources Limited (LON:ARS) has raised US$3.3mln (£2.6mln) in a share placing on Wednesday to help fund a feasibility study at its Beruang Kanan Main (BKM) copper project in Indonesia.
The exploration firm said it had issued around 60.7mln new shares in the oversubscribed placing at a price of 4.25p each.
READ: Asiamet Resources rises as it begins additional drilling at BKM copper project
The proceeds would be used primarily to complete the feasibility study at BKM with an additional infill drilling program to upgrade inferred resources and provide increased data through geotechnical drilling for mine design parameters, with the final study to be delivered in the first half of 2019.
Funds from the placing would also be used to drill walk up targets in the BKM project area, as well as extending the nearby BKZ resource and drilling the Baroi prospect.
Asiamet would also begin corporate social responsibility programmes at its Beutong copper-gold project while continuing to evaluate strategic development options for the site.
Peter Bird, chief executive of Asiamet, said the financing would allow the group to complete additional work programs for the completion of the feasibility study, having already completed “a detailed planning process” that had allowed it to mobilise its own drill rigs.
He added that the company was continuing discussions with potential partners for its Beutong project.
The new shares will be admitted to AIM at 8am on 5 December.
In a note to clients, analysts at City broker Liberum cut their target price to 18p from 20p, however they said the risk looked "asymmetric" with further upside potential from the permitting at Baroi and drill results from "the magnetic anomaly adjacent to high-grade copper intersections below BKZ".
In mid-morning trading Thursday, Asiamet shares were up 0.5% at 4.6p.
--Updates with result of placing, broker changes, and share price--