Australian Strategic Materials (ASX:ASM) - Managing Director, David Woodall
Managing Director, David Woodall
Source: The Market Herald
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  • A consortium of South Korean investors has completed due diligence on Australian Strategic Materials’ (ASM) Dubbo specialty metals project in New South Wales
  • Last year, the company announced a $340 million investment from the Korean Consortium in return for a 20 per cent stake in Dubbo under a conditional framework agreement
  • The investors have now come and visited the Dubbo project and met with ASM, which has been successful
  • The parties are now focused on finalising the investment
  • ASM last traded at $8.55 per share

A consortium of South Korean investors has completed due diligence on Australian Strategic Materials’ (ASM) Dubbo specialty metals project in New South Wales.

Last year, the company announced a $340 million investment from the Korean Consortium in return for a 20 per cent stake in Dubbo under a conditional framework agreement.

The investors include Cerritos Holdings, Kamur Partners and ACE Equity Partners.

After a delay due to COVID-19 restrictions, ASM hosted an extensive Australian due diligence visit by the investing partnership.

This included a visit to the Dubbo Project and discussions on ASM’s scientific alliances and business initiatives in Australia.

According to ASM’s Managing Director David Woodall, the completion of due diligence to the satisfaction of the Investing Partnership occurred concurrently with continuing development on the remaining formal contractual conditions of the consortium’s investment.

“Together we are now focused on securing a significant South Korean, strategic investor to partner with ASM on its Dubbo Project and to completing the terms for a formal binding agreement,” he said.

“Our relationship with our Korean partners continues to go from strength to strength.”

Spokesperson for the Investing Partnership, CEO and Founder of Cerritos Pumsoo Ra said the partnership was committed to working with ASM to finalise an investment.

“It is clear that ASM has the resources and technical capacity to partner with us to support the supply chain of critical metals needed for the production of clean energy technologies such as electric vehicles and renewable energy generation capacity, as well as advanced electronics,” he said.

“We need that supply chain to be secure and reliable, and we look forward to continuing our discussions with ASM and our partners in Korea.”

Just before the market opens for the week, ASM last traded at $8.55 per share.

ASM by the numbers
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