Asiamet Resources Ltd (LON:ARS) has purchased the shares in Beutong Resources Pte Ltd that it does not already own for A$4.375mln.
The AIM-listed company bought a 50% stake in Beutong, which wholly-owns the Beutong copper-gold deposit in Indonesia, by exercising its option agreement with PT Media Mining Resources.
The deal raises Asiamet’s effective ownership in Indonesian company PT Emas Mineral Mumi (EMM), to 80% from 40% since Singapore-based Beutong Resources owns 80% in EMM.
WATCH: Asiamet increases ownership at Beutong copper-gold project to 80%
Beutong is a large high-quality copper, gold, silver, molybdenum deposit located in Nagan Raya Regency in the Indonesian region of Aceh. It comprises the Beutong East Porphyry (BEP), Beutong West Porphyry (BWP) and the Beutong Skarn (BSK) deposits.
'Major milestone' for Asiamet, says CEO
“Asiamet is extremely pleased to substantially lift its interest in this advanced high-quality copper-gold project at a time when the copper market is forecast to be moving into supply deficit and large copper development opportunities with nearby infrastructure are rare,” said Asiamet chief executive Peter Bird.
“Achieving this major milestone doubles the company's attributable contained metal inventory in Beutong to 1.92Mt (mln tonnes) copper, 1.68Moz (mln ounces) gold and 16.48Moz silver.”
This year Asiamet plans a targeted infill and extension drilling programme of eight holes at a total of 4,000 metres.
READ: Asiamet Resources reveals high grade drill results from Beutong project
The work aims to expand the boundaries of BEP and BWP deposits and test the gap between them, further assess geotechnical conditions and the potential for heap leach SX-EW processing of BEP mineralisation to produce copper cathode.
To date three holes at 767.5 metres have been completed.
“The company looks forward to reporting on progress at Beutong as the recently mobilised deeper capacity drill rig ramps up and development activities incorporating evaluation drilling, metallurgy and geotechnical activities gain momentum in the second half of 2018,” said Bird.
Asiamet entered into a joint venture and option agreement on the Beutong project with PT Media Mining Resources in February 2011.
