The AIM-listed company said it has successfully placed around 45.5mln new shares at a price of 2.2p each, an 8.3% discount to its closing price on Thursday, to raise gross proceeds of GBP1mln.
The oversubscribed placing was in addition to a conditional firm placing of 395.5mln new shares to raise around GBP8.7mln and a conditional subscription of 16.5mln shares to raise around GBP0.36mln, both of which are at the same price per share.
Announcing the fundraising plans after the close on Thursday, Asiamet said the proceeds will be used to complete a second phase value engineering programme for the BKM project, as well as commence early stage detailed engineering and design works at the site.
The firm said the money will be used to finalise the key Pinjam Pakai permit with the forestry department and secure supplementary permits for construction and commencement of operations. It will also secure project financing and help fund drill tests on a number of high probability copper targets in close proximity to the site, continue community engagement and development work, and test the potential for a high grade extension of its Beutong copper-gold deposit.
“The overwhelmingly strong response from institutional investors coupled with large retail demand through the accelerated bookbuild sees this capital raising heavily oversubscribed and strongly positions the company to deliver on its key objectives for 2021 and beyond. Asiamet has been progressively developing its portfolio of high-quality copper projects over the past few years and is now very well positioned to take advantage of a highly favourable macroenvironment for copper and substantially higher copper prices going forward”, Asiamet executive chairman Tony Manini said in a statement.
“Solid news flow is anticipated from BKM value engineering works, a further update to project economics, achieving permitting milestones, drilling of high potential copper targets nearby BKM and project financing workstreams. Further drilling and development partnering initiatives at Beutong are planned to bring the project back onto the radar of strategic investors. With a strong balance sheet now in place we are confident of delivering very significant value for stakeholders through these initiatives during the course of 2021 and look forward to updating the market with regular updates as we progress”, he added.
The company’s shares were 4.2% lower at 2.3p in early deals on Friday.