Asiamet Resources Limited has signed an agreement with PT Wasesa Indo Nusa (PT WIN) to sell its subsidiary Indokal Limited which owns the BKM Copper project located in Indonesia’s Central Kalimantan for $163.4mn, the company said in the statement.

 

BKM Project’s initial mine life is nine years and it is expected to produce 25,000mt of copper cathode per annum, as per a  Feasibility Study dated June 2019.

 

The project hosts Total Proved and Probable Ore Reserves1 of 51.5mt @ 0.6pc Cu for 303kt of contained copper and 0.39pc of total soluble Cu for 206kt of contained soluble copper.

 

The company will receive $10mn of the sale price in cash once the sale and purchase agreement has been executed and then will get $40mn after PT WIN completes an initial public offering (IPO) on the Indonesian Stock Exchange scheduled for early 2021. The rest of the selling amount will be paid through 22.5pc shares in PT WIN after its listing.

 

Asiamet will continue to manage the project for a period of up to 12 months (extendable by mutual agreement) after the IPO of PT WIN through a management services contract. As per the agreement, PT WIN will also acquire Aeturnum Energy International Limited’s commodities trading business.

 

The outlook for copper is expected to remain strong as the transition to renewable energy and electric vehicles (EVs) is gathering momentum and driving increased copper demand, according to Asiamet and at the same time, mine supplies continue to be challenged. The strong upward revisions of copper price forecasts by various institutions support the move and provide a solid platform for the proposed IPO of PT WIN, the company added. 

 

Asiamet is an emerging copper producer focused on the development of a portfolio of large copper, copper-gold, and polymetallic deposits in Indonesia.

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