Asiamet Resources Ltd (AIM:ARS) has announced a non-brokered, private placement to Indonesian holding company Delta Dunia Makmur (DOID) worth £2.65mln at an issue price of 1.15p per share.
The placement was agreed on at a 17.5% premium to the 10-day volume weighted average price (VWAP) and increases DOID's interest in the company from 15.3% to 24.2%.
Proceeds of the placing will be used to finalise the BKM copper project bankable feasibility study update, advance project financing works for the development of BKM and for working capital purposes.
As part of the deal, DOID is entitled to nominate two directors to the Asiamet Board.
DOID may subscribe for a further US$5mln of shares under certain conditions at a 20% premium to the 10-day VWAP.
Asiamet chief executive officer Darryn McClelland said: “With its strong local presence in mining project infrastructure development, mining operations and financing, we consider DOID to be an excellent strategic partner for our business.
“Collaboration with DOID has been very positive to date and their ongoing commitment to the business through this and potential future placements at a significant v17.5% premium to the 10-day VWAP is a strong endorsement of the company.”
President Director of DOID Ronald Sutardja commented: "We believe that the company has a promising project; one which will provide the world with much-needed copper in the transition to net zero.”
ARS shares increased by 4.46% to 1.06p on Tuesday, November 8.