Asiamet Resources (LON:ARS) has announced an over-subscribed placement of 48.4m shares priced at 3.1p for gross proceeds of £1.5m. CEO Tony Manini topped up his holding by a further 322k shares to now hold 2.4% of the company. Following completion of placement the shares in issue will be 623m.
Funds will be used for working capital purposes for the coming year. Work to be undertaken includes:
• Infill drilling to extend mine life on the BKM copper deposit at Beruang Kenan to greater than 10 years
• Further exploration work on the other identified geophysical and geochemical anomalies immediately around the BKM deposit
• Environmental Assessment work and column leach testing of extraction rates
• Pre-feasibility level studies of project optimisation, planning, and design
• Continuing documentation and administration to sustain and advance the Beruang copper project to exploitation license issue and continuing to seek a partner for Beruang and for the Jelai gold project
We find the investor appetite for mining equity in general has improved in recent weeks and in our view the over-subscription interest in ARS at a better price than the last raise is testimony to the quality of the Beruang Kenan project.
We re-iterate our SPECULATIVE BUY recommendation and 6.2p target.