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Strategic Partner Secured for BKM Copper Project
Strategic Partner Secured for BKM Copper Project.
About this update from Asiamet Resources Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 1837R\n Asiamet Resources Limited\n 03 November 2021\n \n \n \n \n \n \n \n 3 November 2021\n \n \n \n \n \n Strategic Development Partner Secured for BKM Copper Project\n \n \n \n \n \n Asiamet Resources Limited (\"Asiamet\" or the \"Company\") is pleased to announce it has entered into a Heads of Agreement (\"HoA\") with PT Delta Dunia Makmur Tbk. (\"DOID\"), an Indonesian public company and one of the largest mining services companies in Indonesia. Subject to completing the key conditions precedent DOID will earn a 51% interest Asiamet's wholly-owned subsidiary, Indokal Limited (\"Indokal\") by contributing $50 million towards the BKM mine development via a series of cash payments and in kind expenditure (the \"Proposed Transaction\").\n \n \n Indokal holds the Kalimantan Surya Kencana Contract of Work (\"KSK CoW\"), including the BKM Copper Project (\"BKM\"), located in Central Kalimantan, Indonesia.\n \n \n The deal is expected to create significant value for all Company stakeholders with the BKM project well-funded towards production and able to leverage off DOID's extensive Indonesian operational capability and expertise in mining and mine development related services including mining and earth moving, civil works, process plant and mine infrastructure construction. \n \n \n All references to $ are US Dollars. \n \n \n Proposed Transaction Highlights\n \n \n · \n $50 million contributed towards the development of the BKM copper project and unlocking further value in the KSK CoW, split as follows:\n \n \n · \n Upon execution of Binding Agreement, $10 million, paid in cash to complete value engineering works and expand the mineral inventory and mine life through additional resource expansion drilling (\"Tranche 1\")\n \n \n · \n $10 million, paid in cash to undertake Front End Engineering Design works (\"Tranche 2\")\n \n \n · \n $20 million, either in cash or in kind for civil and mine engineering-construction works (\"Tranche 3\") \n \n \n · \n $10 million, contributed towards long lead time capital items (\"Tranche 4\").\n \n \n · \n Upon completion of a staged earn-in to the KSK CoW (Tranches 1-4), DOID will have an effective 51% interest in the project.\n \n \n · \n DOID through its strong financing capability and relationships (especially in debt and project...