Mining contractor issuer, PT Delta Dunia Makmur Tbk. (DOID) increased its stake in Australian mining company AsiametResources Limited to US$3 million to ensure cooperation in the Kanan Main Bear (BKM) Coppermine.
Asiamet CEO Darryn McClelland said that the proceeds from the share placement will be used for the finalization of the feasibility study of the BKM copper project, the work of financing the follow-up project and the development of BKM, as well as for working capital.
"With this share placement, DOID's ownership in Asiamet has increased from 15.3 percent to 24.2 percent," explained McClelland in an official statement, Wednesday (9/11/2022).
With this additional shareholding, DOID reserves the right to nominate two Directors to Asiamet as long as their shareholding in the Company remains above 19.9 percent of the issued share capital in the Company.
If DOID's shareholding is below 19.9 percent of the issued capital, DOID has the right to nominate one director to the Company's board of directors.
DOID or its nominated subsidiary is given the option to further order US$5 million of executable shares at any time after two DOID directors appointed earlier as of January 1, 2023, and within 12 months from the date of completion of the current placement.
"We continue to collaborate extensively with DOID in project development as well as related to potential financing channels for BKM projects. Furthermore, DOID will complete the project due diligence and Asiamet will engage potential banks for debt financing," he added.
With regard to global geopolitical and macroeconomic dynamics, McClelland admits it has negatively impacted market sentiment and challenging inflation of many resource projects globally. However, DOID continues to support Asiamet by continuing the development of the BKM project and launching financing.
"With experience in local mining and infrastructure development of mining projects, mining operations, and financing, we consider DOID to be an excellent strategic partner for our business," he added.
Asiamet is also looking forward to the presence of a new director to join the board of directors of Asiamet to provide more detailed direction related to the completion of the BKM project.
Ronald Sutardja, President Director of DOID added, that DOID is confident that it has a promising project, and will be one of the indispensable copper suppliers in the transition tonet zero emissions.
Image source: deltadunia.com
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