(LON:ARS ) said it has continued to advance all workstreams required to de-risk the BKM project in Indonesia in preparation for the project financing stage.
The Indonesia-focused producer said its in-country team continues to make headway in its efforts to secure the forestry borrow-to-use permit from Jakarta for the BKM project despite all field based activities, including drilling, being currently on hold as a result of lockdown restrictions.
The project, which is located in Central Kalimantan, overlaps with a forest area that allows commercial activities including mining and therefore requires a 'borrow-to-use forestry permit'.
In May, Asiamet outlined that it would have to meet three requirements in order to secure the permit, including the Governor's recommendation, a corridor agreement and a revised environmental impact assessment. The group said one of these has now been fulfilled.
Upon reaching these three milestones, the group expects the Ministry of Environment and Forestry to issue a conditional approval for the permit, also known as “Pinjam Pakai.”
Shares in Asiamet Resources were trading 4.84% lower at 2.95p on Friday morning.
As COVID related travel restrictions are progressively lifted, Asiamet said it will be ‘increasing the momentum of its value enhancement and optimisation work on the BKM copper project.’
The group said it has appointed a new ‘highly experienced’ project manager, Andrew Neale, to lead the optimisation work, commencing on July 1 2020, to prepare for project financing.
The planned program will evaluate both the value enhancement opportunities identified in the BKM Bankable feasibility study and investigation additional initiatives ‘with the potential to significantly lift the current robust economics of the BKM project.
“This important piece of work is expected to further lift the existing strong economics of the BKM project leading into the project financing stage and Andrew has the ideal background and experience to lead this program,” said Tony Manini, Executive Chairman of Asiamet.
The group also noted that it has received a confidential offer from its 19.9% shareholder Aeturnum Energy to acquire a majority position in the KSK Contract of Work asset.
“While it is difficult to provide certainty around the outcome at this stage, we are working hard to reach an agreement with Aeternum that creates significant value for all stakeholders in Asiamet and the KSK CoW,” said Manini.
“Whilst negotiations continue, momentum is picking up again at the project level and Asiamet anticipates a period of strong news flow in the second half of 2020 as COVID restrictions are progressively lifted and the BKM project related technical and permitting activities ramp up,” he added.
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