Asiamet Resources raises £2m to fund copper mine development

6th Dec 2016 08:04

(ShareCast News) - AIM-listed miner Asiamet Resources raises £2m through a private equity placing, in order to fund its copper project in the next stage of development.Through broker Optiva Securities, the company is to receive about £2m from the purchase of 86.9m sharers at £0.023p each.The new shares will be admitted to trade on AIM on around 20 December, which will give the company a total share capital of around 709.9m.Over the past 18 months has been de-risking its assets and advancing the company from explorer to potential developer status and will carry out a feasibility study for the Beruang Kanan Main (BKM) project in Kalimantan, Indonesia next year.Chief executive Tony Manini said there are very few listed junior companies with a high quality development-ready copper project at a time when the copper market is predicted to move into a supply deficit over the next two to three years."By advancing the BKM feasibility study through the development curve using the proceeds of the placement, Asiamet will be very well positioned to take advantage of the forecast increase in copper prices associated with this predicted supply deficit, and a rising level of investor and strategic interest in gaining exposure to copper producers and developers."He said that as copper prices have begun to lift, the company has already seen higher levels of interest from institutional investors, private equity groups, copper traders and end users, and other mining companies, and has introduced several new investors.Shares in Asiamet Resources were down 6.5% to 2.43p at 1015 GMT.