Asiamet has signed a heads of agreement to sell a 51% stake in BKM to locally-listed contract miner PT Delta Dunia Makmur (DOID) in exchange for US$50 million in funding, to be delivered in four tranches.
Total capex is estimated at US$232 million, of which US$32 million is contingency.
"The Asiamet board endorses and fully supports the proposed transaction which establishes a clear path for the financing and development of the BKM copper project and the broader KSK Contract of Work," said Asiamet's executive chairman Tony Manini.
"Retaining a substantial interest in the BKM copper project and the broader KSK CoW enables the company to continue benefiting from the significant upside potential still to be evaluated on the property, as demonstrated by recent drilling and value engineering work," he said.
Asiamet added the alliance "also allows for the company and DOID to co-operate and jointly develop future minerals mining-related assets".
A previous deal to raise funding fell apart in early 2021 after the planned partner Aeterunum failed to transfer the initial payment of US$2.5 million.
Asiamet said that the latest deal will leave the project "well-funded towards production and able to leverage off DOID's extensive Indonesian operational capability and expertise in mining and mine development-related services including mining and earth moving, civil works, process plant and mine infrastructure construction".
A June 2019 feasibility study showed an initial nine-year mine life for BKM, with the asset producing up to 25,000t of copper cathode based on proved and probable ore reserves of 51.5Mt at 0.6% copper.
Asiamet shares were down 5.3% at 11.42 London time, at 2.53p. Asiamet share prices rose sharply in early October 2021, as DOID took a stake of around 15% in Asiamet.