Asiamet Resources Limited (LON:ARS) said the US$163mln disposal of its BKM prospect in Kalimantan, Indonesia, has been affected by coronavirus (COVID-19) disruption but it expects to complete it by the end of 2020.
The junior has a non-binding agreement for Indonesian group PT Win to acquire the subsidiary that owns the KSK licence that contains BKM.
Diligence for the transaction is now nearing completion, Asiamet said, including the proposed IPO of PT WIN on the Indonesian Stock Exchange as well as the binding Sale and Purchase Agreement (SPA) documentation.
Both parties remain committed to the deal, it said, and continue to work closely together to complete binding documentation but some team numbers have been affected by COVID-19, which has delayed the process.
“We anticipate completion to occur prior to the Christmas/New Year period,” the group said in a statement.
The deal will see PT Wasesa Indo Nusa (PT WIN), a private Indonesian shell company, acquire Asiamet’s wholly-owned subsidiary company Indokal, which holds the Kalimantan Surya Kencana (KSK) Contract of Work which in turn hosts the BKM project.
It will be a phased transaction with an aggregate deal consideration of US$163.4mln.
At first, US$10mln of cash will be paid to Asiamet upon execution of a binding sale agreement.
The next US$40mln of cash will come as PT WIN completes an intended stock market IPO onto the Indonesian Stock Exchange in early 2021.
Asiamet will then subsequently receive PT WIN shares equating to 22.5% of the company, in two tranches.
