Asiamet Secures Long-Term Mining Tenure For BKM Copper Project

26th Mar 2018 17:13

LONDON (Alliance News) - Asiamet Resources Ltd said Monday it has secured a long-term mining tenure at its BKM copper project in Indonesia after "long running" negotiations.

Talks have been ongoing over its contract of work in the country covering BKM, and Asiamet has now secured a long-term mining tenure for up to 50 years, with an initial tenure of 30 years.

The company will retain 40,000 hectares under the revised contract, down from 61,003 hectares.

Further, the deal will include income tax of 25% and a net smelter return royalty for copper of 4%, previously USD45.00 per tonne, gold of 3.8%, previously USD225.00 per kilogramme, and silver of 3.3%, compared to USD1.9 per kilogramme before.

Asiamet's BKM is currently undergoing a feasibility study, which is expected to be completed in the middle of 2018. Securing the new tenure, it said, puts it in a "strong" position to deliver the project.

Chief Executive Peter Bird said: "Working closely with the government of Indonesia to achieve this outcome represents a significant milestone for Asiamet. Signing the amendment to the KSK contract of work is a major de-risking milestone for the company as we head into the project financing and development stage for our flagship BKM copper project.

"Achieving security of tenure and the fiscal framework for the KSK project significantly enhances our ability to deliver value for all our stakeholders both through the development of the BKM copper project and the discovery of further nearby value creating opportunities such as the recent BKZ polymetallic deposit."

Shares closed up 1.1% on Monday at 11.62 pence each.

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