Asiamet Resources Ltd. is raising US$10 million for various work initiatives in Indonesia through an offering of up to 65,402,224 shares at 1 U.S. cent apiece.
The company said March 13 that it will use US$4.7 million of the proceeds to increase its interest in the Beutong copper-gold property from 40% to 80% and to accelerate drilling and metallurgical programs at the project.
Another US$2.5 million is earmarked for regional exploration on its KSK copper property, with another US$3.3 million going toward starting optimization and early works at the BKM project and completing a bankable feasibility study.
The BKM project, also known as Beruang Kanan Main, forms part of the KSK property in Indonesia's Central Kalimantan province.
The feasibility study and an initial resource estimate for the adjacent BKZ zinc-copper project are expected to be completed in the first half.
Asiamet, which said the remaining US$2 million of its US$12 million budget will be covered by existing cash reserves, will use US$1.5 million for general working capital including costs related to the placement.
The new shares are expected to be admitted to trading March 20. Liberum Capital Ltd. is acting as sole book runner and joint broker, with Optiva Securities Ltd. also acting as joint broker.
