The net proceeds will be used to increase Asiamet’s equity position from 40% to 80% in the Beutong project, which contains a large-scale copper porphyry, and to support continued development works at Beutong, including metallurgical test work and drilling.
READ: Asiamet Resources shares rise as it kicks off new drill programme at Beutong copper-gold project
Asiamet’s existing cash resources of US$2mln will be combined with the new money, to support a significant new programme of works.
Around US$4.7mln will be earmarked for increasing ownership at Beutong and accelerating drilling at the property, with US$2.5mln set aside for regional exploration on the KSK Contract of Work.
In addition, US$3.3mln will be used to commence optimisation and early works in relation to BKM and completion of the bankable feasibility study.
Finally, US$1.5mln will be set aside for general working capital purposes, including the costs of the placing.