Asiamet Resources Ltd (LON:ARS) is raising US$2mln via a placing of shares to key shareholder ASIPAC, a diversified investment group based in Melbourne.
The shares are priced at 4.25p each.
ASIPAC through its extensive network in China will provide support for a number of key initiatives relating to development and funding of the BKM and Beutong copper projects in Indonesia.
It is proposed that an ASIPAC representative will join the Asiamet board as a non-executive director on 1 July 2019
The money raised will be used for finalising feasibility study activities at BKM, commencing early stage work on value engineering opportunities, and provide working capital to support ongoing partner and funding initiatives
ASIPAC's interest in the Company will rise to 8.55%
"The support provided by ASIPAC over the past few years and in particular through this private placement, together with the intended appointment of an ASIPAC representative to the Asiamet board, significantly enhances the company's ability to execute on its strategy and deliver substantial value for its stakeholders,” said Asiamet executive chairman Tony Manini.
“We welcome ASIPAC's continued support and look forward to working with them on a number of identified initiatives with the potential to significantly enhance our ambitions of building a mid-tier copper-gold company in the Asian region."
Separately, Asiamet revealed financial results for the year to 31 December 2018.
During the year the company booked a loss of US$11mln, and closed out with US$2.7mln in cash.