Asiamet Resources Limited announced it has entered into a Heads of Agreement with PT Delta Dunia Makmur Tbk. Subject to completing the key conditions precedent DOID will earn a 51% interest Asiamet's wholly-owned subsidiary, Indokal Limited ("Indokal") by contributing $50 million towards the BKM mine development via a series of cash payments and in kind expenditure. Indokal holds the Kalimantan Surya Kencana Contract of Work ("KSK CoW"), including the BKM Copper Project ("BKM"), located in Central Kalimantan, Indonesia.

The deal is expected to create significant value for all Company stakeholders with the BKM 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. As set out below, the Proposed Transaction is subject to, inter alia, the completion of outstanding technical, commercial and financial due diligence by both parties. In this regard, the Company will grant DOID an exclusivity period of up to 90 days to finalise its due diligence, which is well advanced. Simultaneously, the parties will progress negotiations and prepare the Binding Agreement to be signed upon satisfactory completion of all due diligence activities.  Following the execution of the Binding Agreement, Asiamet will seek shareholder approval for the Proposed Transaction.

The key terms of the HoA allow for the completion of due diligence activities by DOID, both parties completing binding transaction documentation and satisfaction of the relevant condition's precedent.  These details are set out below: DOID, a 15.36% shareholder in Asiamet, through a series of cash payments and in kind contributions towards mine development, has the ability to earn up to a 51% interest in Indokal, the 100% owner of the KSK-CoW. The earn-in funding is described as follows: Tranche 1 funding; Upon signing the Binding Agreement, DOID will pay Indokal $10 million in cash. This funding will be directed towards completing value engineering studies and further drilling aimed at enlarging the mineral inventory and potentially extending mine life.  At the completion of Tranche 1, DOID will have earned a 10% equity interest in Indokal; Tranche 2 funding; DOID will pay Indokal $10 million in cash.  This funding will be directed towards Front End Engineering and Design works for mine development to earn an additional 10% equity interest in Indokal Limited.

At the completion of Tranche 2, DOID will have earned an additional equity interest of 10%, for a cumulative total of 20% equity interest in Indokal. Tranche 3 funding; DOID will contribute a further $20 million either in cash or in-kind (to be agreed by the parties) towards the BKM Copper Project civil and mine engineering works, including preparation for construction of processing facilities, mine buildings and associated site and river port infrastructure.  At the completion of Tranche 3, DOID will earn an additional 20% equity interest for a cumulative total of 40% equity interest in Indokal. Tranche 4 funding; DOID will contribute a further $10 million towards the capital development of the BKM copper project through the placement of orders for long lead plant and equipment items. At the completion of Tranche 4, DOID will earn an additional 11% equity interest for a cumulative total of 51% equity interest in Indokal Limited.

Upon successfully completing Tranche's 1-4 and earning a 51% interest, DOID at its election can transfer the earned equity interest from Indokal to PT Kalimantan Surya Kencana ("PT KSK"), the owner of the KSK CoW.