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Asiamet Resources regroups after terminating BKM deal

Snapshot

  • Focused on two large copper-gold and polymetallic deposits
  • Deal for flagship BKM project terminated
  • Beutong on the adjacent island of Sumatra
Copper mine

Quick facts: Asiamet Resources

Price: 2.29 GBX

AIM:ARS
Market: AIM
Market Cap: £33.76 m
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What Asiamet does

Asiamet Resources Limited (LON:ARS) is an AIM-listed mine developer. It owns large copper-gold and polymetallic deposits on the Indonesian islands of Kalimantan and Sumatra. The deposits are adjacent to the key growth markets in Asia.

The Beruang Kanan Zinc (BKZ) polymetallic project is within the south-eastern area of the KSK, less than 800 metres north of the BKM copper project.

The wider KSK district also incorporates a number of targets in addition to BKM and BKZ, including the BK South (BKS) and BK West (BKW) copper prospects, and the Baroi polymetallic system prospect.

On Sumatra, the Beutong Project - in which Asiamet has an 80% equity interest –comprises the Beutong East Porphyry (BEP), Beutong West Porphyry (BWP) and the Beutong Skarn (BSK).

In January 2020 Asiamet said it plans to relocate its corporate head office function to Jakarta, Indonesia from Melbourne, Australia.

How’s it doing?

In January, Asiamet Resources announced the termination of the binding sale and purchase agreement (SPA) entered into with PT WIN, as signed and announced on December 24, 2020, for the acquisition of Indokal Ltd, the owner of the Kalimantan Surya Kencana Contract of Work, located in Central Kalimantan, Indonesia.

Under the SPA, the first tranche payment of US$2.5mln was not transacted by PT WIN within the agreed timeframe of 10 business days following the signing of the SPA and a subsequent extension period.

What the boss says: Tony Manini, chief executive 

"While there is risk in every transaction, the termination of a sale process after investing a very significant amount of board and management time is always difficult.

“However, in this situation of material breach and non-compliance with clearly agreed terms of a binding SPA, and the lack of reasonable explanation or reasonable alternative, the Asiamet board was left with little choice but to terminate the agreement to protect the interests of our shareholders and all stakeholders associated with the KSK CoW and BKM copper project"

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