Asiamet Resources Half-Year Results 2016

VANCOUVER, British Columbia, Aug. 25, 2016 (GLOBE NEWSWIRE) -- The Asiamet Resources Limited (the "Company" or "ARS") Financial Statements and Management Discussion & Analysis - Quarterly Highlights ("MD&A - QH") for the six months ended June 30, 2016 are available for viewing onwww.sedar.com or www.asiametresources.com.

The highlight of the half year to June 30, 2016 was the announcement on April 5, 2016, of the results of the independently prepared Preliminary Economic Assessment ("PEA") study of the Beruang Kanan Main ("BKM") Copper Deposit.  Following completion of this highly positive PEA study, and a successful capital raise completed on April 27, 2016, Asiamet initiated feasibility studies on the BKM copper project.

As at June 30, 2016, the Company had working capital of $1,801,904.  On April 27, 2016, the Company closed a brokered private placement and issued and settled through CREST 48,387,097 common shares at a price of GBP 3.1 pence per share for total gross proceeds of £1.5 million (equivalent to $2.2 million) all of which has been received by the Company.

Exploration and evaluation expenditures on Asiamet projects for the six months ended June 30, 2016 totaled $1,333,349, before deducting the net VAT recovery of $993,641 and before adding non-cash depreciation of $37,427 for a total of $375,524 compared to $945,880 in the six months ended June 30, 2015.  In the three months ended June 30, 2016, the subsidiary that holds the KSK CoW was refunded VAT (value added tax) of IDR 13.2 billion the approximate equivalent of $1 million.  The Company expensed this VAT as it was incurred and has now recorded the refund as a taxation recovery against exploration expenses.  Beginning with fiscal year 2016 the Company is treating VAT as a current asset which at June 30, 2016 was $86,430 relating to VAT in calendar 2015 and year to date 2016.  Administration expenses for the six months ended June 30, 2016 totaled $468,047 compared to $585,614 in the six months ended June 30, 2015.  The Company has increased its marketing awareness program focused on the AIM marketplace where the great majority of the Company's shares trade. 

The Company announced the results of the independently prepared PEA study of the Beruang Kanan Main Copper Deposit on April 5, 2016.  The PEA is the first study undertaken to evaluate the economics of developing an open pit mine and heap leach solvent extraction electro-winning facility ("SX-EW") to directly produce copper cathode based on the near surface copper deposit reported in the 2015 BKM Resource estimate (refer ARS NR October 21, 2015). 

Results of the PEA study demonstrate excellent potential for developing a robust, low strip ratio, low capital intensity copper project with low operating costs, strong cash flow generation capacity and significant upside potential through further Resource growth.  The PEA is available for viewing onwww.sedar.com or www.asiametresources.com.

Following on from the strong results demonstrated in the BKM PEA, a feasibility study fully assessing the proposed mine development has been initiated. The feasibility study represents a major de-risking phase for the project, the outcomes of which will be used by a wide range of stakeholders, including potential financiers, to assess the project's viability.

The Company engaged a Study Manager to lead the owner's team for the feasibility study and also contracted a number of the key consultants and service providers required to oversee the long lead time items in each of the key study disciplines. Local Indonesian consultants, service providers and manpower are being utilized wherever possible.

At the BKM site a comprehensive Resource infill and extension drilling program began at the end of May and continues at the time of this report.  The drill program is planned to upgrade a majority of the Inferred Mineral Resource i.e. 49.7million tonnes grading 0.6% Cu containing 657 million pounds of copper at (0.2% Cu reporting cut), to the Measured and Indicated Mineral Resource categories. Two drills are currently operational. Two large diameter (PQ size) core holes have also been completed to collect fresh bulk samples for detailed metallurgical testwork. Approximately 100 holes/9000 meters of Resource drilling and 15 holes/2000 meters of metallurgy drilling is planned. Drill results of the first 12 holes were announced on July 21, 2016, August 4, 2016, and August 17, 2016.

The excellent thickness and continuity of near surface high grade 1-3% copper mineralization intersected in feasibility study drilling to date further strengthens the key fundamentals of the BKM project. The delineation of these discrete zones of continuous, shallow, higher grade mineralization that is easily accessible for early mining has the potential to lower operating costs and further enhance project economics. 

Other activities undertaken in the six months ended June 30, 2016 have been focused on corporate initiatives aimed at further strengthening the company's project delivery capability and financial position and on the conversion of the Beutong and Jelai exploration IUP's (Izin Usaha Pertambangan) to production IUP's. Approval of the IUP Production secures long term mining title valid for 20 years, extendable for two subsequent periods each of 10 years duration.

Conversion of both the Beutong IUP and Jelai IUP has been significantly delayed due to changes to the regulatory process and the responsible regulatory bodies and personnel within the Government of Indonesia, however the process is now nearing completion and a decision on the grant of an IUP production for both projects is expected shortly.

Under Indonesian Mining law the holder of an IUP exploration is guaranteed an IUP production provided all requirements have been met, and an IUP exploration cannot be terminated if there has been an application made to convert to an IUP production.

Qualified Person

Data disclosed in this press release have been reviewed and verified by ARS's qualified person, Stephen Hughes, P. Geo, Vice President Exploration of the Company and a Qualified Person within the meaning of NI 43-101 and for the purposes of the AIM Rules.

ON BEHALF OF THE BOARD OF DIRECTORS

Tony Manini, Deputy Chairman and CEO

For further information, please contact: 

Tony Manini
Deputy Chairman and CEO, Asiamet Resources Limited
Telephone: [phone]
Email: [e-mail]

FlowComms Limited
Sasha Sethi
Telephone: [phone]
Email: [e-mail] / [e-mail]

Asiamet Resources Nominated Adviser
RFC Ambrian Limited
Andrew Thomson / Oliver Morse
Telephone: [phone]
Email: [e-mail] / [e-mail]

VSA Capital Limited
Andrew Raca / Justin McKeegan
Telephone: [phone]
Email: [e-mail]

Optiva Securities Limited
Christian Dennis 
Telephone: [phone]
Email: [e-mail]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements.   Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices.  There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.  Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

ASIAMET RESOURCES LIMITED
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(unaudited - expressed in United States dollars)

		June 30, 2016			December 31, 2015
ASSETS
Current assets
	Cash	$	1,961,683		$	778,634
	Receivables and other assets		184,445			99,911
			2,146,128			878,545
Non-current assets
	Equipment		62,424			91,799
	Security deposit		92,835			92,374
TOTAL ASSETS		$	2,301,387		$	1,062,718
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
Current liabilities
	Trade and other payables	$	344,224		$	349,243
Non-current liabilities
	Provision for employee service entitlements		44,355			42,377
			388,579			391,620
Shareholders' equity
	Share capital		6,190,610			5,706,741
	Equity reserves		31,534,532			29,967,939
	Deficit		(35,805,306	)		(34,996,554	)
			1,919,836			678,126
	Non-controlling interest		(7,028	)		(7,028	)
			1,912,808			671,098
TOTAL LIABILITIES AND EQUITY		$	2,301,387		$	1,062,718

ASIAMET RESOURCES LIMITED 
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS
(unaudited - expressed in United States dollars)

			For the three months ended							For the six months ended
		Note	June 30, 2016			June 30, 2015				June 30, 2016			June 30, 2015
Expenses
	Accounting and audit		$	27,545		$	2,345			$	26,887		$	2,345
	Consultants and shared office costs			149,375			215,373				301,088			473,101
	Exploration and evaluation expenditures	8		(122,500	)		512,712				375,524			945,880
	Investor relations			25,499			421				35,888			839
	Legal			-			3,163				2,558			6,471
	Office and administrative services			14,493			7,426				20,269			10,374
	Transfer agent and regulatory fees			49,448			54,789				76,120			79,902
	Travel and accommodation			4,958			12,582				5,237			12,582
				148,818			808,811				843,571			1,531,494
Other items
	Foreign exchange (loss) gain			31,664			(7,461	)			33,080			(4,628	)
	Impairment loss on asset acquisition			-			-				-			(3,866,813	)
	Interest income			1,641			(48	)			1,739			(18	)
				33,305			(7,509	)			34,819			(3,871,459	)
Loss and comprehensive loss for the period			$	(115,513	)	$	(816,320	)		$	(808,752	)	$	(5,402,953	)
Loss attributable to:
	Equity holders of the parent		$	(115,513	)	$	(804,897	)		$	(808,752	)	$	(5,361,053	)
	Non-controlling interest			-			(11,423	)			-			(41,900	)
			$	(115,513	)	$	(816,320	)		$	(808,752	)	$	(5,402,953	)
Basic and diluted loss per common share			$	(0.00	)	$	(0.00	)		$	(0.00	)	$	(0.01	)
Weighted average number of shares outstanding				574,597,071			426,900,370				591,706,321			396,095,858

ASIAMET RESOURCES LIMITED 
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(unaudited - expressed in United States dollars)

			For the six months ended
			June 30, 2016			June 30, 2015
Cash provided from (used for):
Operating activities
Loss for the period			$	(808,752	)	$	(5,402,953	)
Adjustment for non-cash items:
	Depreciation			37,427			69,768
	Exploration and evaluation expenditures acquired			-			3,866,813
	Unrealized foreign exchange loss (gain)			1,517			(3,856	)
Changes in non-cash working capital:
	Receivables and other assets			(84,534	)		(84,244	)
	Trade and other payables			(5,019	)		5,837
				(859,361	)		(1,548,635	)
Investing activities
	Beutong acquisition transaction costs			-			13,618
	Purchase of equipment			(8,052	)		(1,102	)
				(8,052	)		12,516
Financing activities
	Share issues			2,154,807			3,018,184
	Share issue costs			(104,345	)		(154,326	)
				2,050,462			2,863,858
Effect of foreign exchange on cash				-			3,092
Increase in cash				1,183,049			1,330,831
Cash, beginning of the period				778,634			30,382
							-
Cash, end of the period			$	1,961,683		$	1,361,213
Supplementary information:
	Interest paid		$	708		$	-
	Income taxes paid			-			-
Non-cash investing and financing activities
	Fair value of shares issued exploration and evaluation expenditures   a subsidiary		$	-		$	3,333,483
	Fair value of warrants issued for the acquisition of a subsidiary			-			455,327
	Fair value of warrants issued to brokers included in share issue costs			86,808			103,712

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Asiamet Resources Limited via Globenewswire