TIDMBZT
RNS Number : 1596H
Bezant Resources PLC
02 August 2021
2 August 2021
Bezant Resources Plc
("Bezant" or the "Company")
Option Agreement with Caerus Mineral Resources PLC to
evaluate and develop copper gold projects in Cyprus
Bezant (AIM: BZT), the copper-gold exploration and development
company, is pleased to announce it has entered into an exclusive
option agreement commencing 1 August 2021 with Caerus Mineral
Resources PLC (LON: CMRS) ("Caerus") to allow the parties to review
Caerus extensive portfolio of copper / gold projects in Cyprus with
a view to possible joint venture mining operations (the
"Agreement").
Highlights:
-- The exclusive option agreement grants Bezant 18 months to
assess the merits and economic prospects of all Caerus potential
copper / gold hard rock mining assets in Cyprus ("Caerus' Cyprus
Properties").
-- The Agreement provides for Bezant to review Caerus' Cyprus
Properties and for both parties to identify one project as a
potential development project.
-- On identification of a project the parties agree to jointly
fund and explore up to USD1million on the selected project.
-- Should the project selected surpass the development criteria
then Bezant and Caerus will form a joint venture company to develop
the project.
-- Bezant will be responsible for the designing, construction
and operation of any mine developed under this agreement.
-- Caerus' expenditure during the pre-mining exploration phase
will be recovered from future cashflows and Caerus will retain a
20% beneficial interest in all future revenues.
Colin Bird, Executive Chairman of Bezant, commented:
"The mission of both Bezant and Caerus is to be well positioned
in what is globally accepted to be the new copper supply deficit.
We both believe that the deficit is very real and will need to be
met by large and small mines.
The Caerus portfolio has the propensity to produce a number of
secondary developments and/or primary developments and Caerus
intends to meet the new copper demand by partnering with likeminded
companies in this sector.
The arrangement benefits both parties in that Bezant will assist
Caerus in fast tracking its assessment, whilst Bezant gains access
to new small scale copper development assets.
We look forward to work with the Caerus team, who in our
opinion, have assembled and positioned themselves with an
extraordinarily gold/copper portfolio in a mining friendly
jurisdiction."
Summary of Option Agreement
Effective Date 1 August 2021
-------------------- -------------------------------------------------------
Parties Bezant Resources Plc and Caerus Mineral Resources
Plc
-------------------- -------------------------------------------------------
Initial period 18 months commencing 1 August 2021 with the
option to be renewed by mutual agreement for
a further 18 months
-------------------- -------------------------------------------------------
Properties covered (a) Any Caerus licence or rights to prospect,
explore or mine any area in Cyprus which may
contain primary copper, gold, or other minerals.
In defining "Property" for the purpose of the
Agreement, licences which are contingent or
are within an area where both parties agree
that they could be classed as contingent or
where it is logistically or economically expedient
to combine licences to achieve the targeted
criteria in terms of tonnes copper and life
of mine, they will form one property.
(b) During the initial 18-month Option period,
any licence acquired, or any newly identified
Property within Cyprus owned or operated by
Caerus will be offered to Bezant on the same
terms as this Agreement;
(c) Should Bezant be offered any properties,
within Cyprus, during the 18 months commencing
1 August 2021, they will offer such properties
to Caerus on the same terms as this Agreement;
-------------------- -------------------------------------------------------
Technical committee A Technical Committee will be formed consisting
of two representatives from each party with
Caerus nominating the chairman during the exploration
phase. During the pre-production and production
phases, Bezant will nominate the chairman. In
neither case will the chairman have a casting
vote.
-------------------- -------------------------------------------------------
Property selection Caerus and Bezant will, using best endeavours
within 90 days of the Agreement, to nominate
a property for primary exploration as a prospective
underground or surface mine (the "Nominated
Property").
-------------------- -------------------------------------------------------
Exploration a) Caerus has committed to an exploration program
Management for the Nominated Property to NI 43-101 or JORC
(2012) equivalent standards.
b) Each party has committed to fund and initial
amount of up to US$500,000 during the period
of exploration and project appraisal.
c) During the exploration period Caerus shall
be the operator.
-------------------- -------------------------------------------------------
Project Nomination If a property meets the minimum criteria for
development (a "Nominated Property") , Caerus
will provide Bezant with a statement of all
sunk costs made up to the point of making a
development decision. "Sunk costs" will mean
all licence fees, all direct fees and exploration
costs, but will not include overhead cost external
to Cyprus and local. These costs will be reimbursed
as a priority or 'first charge".
-------------------- -------------------------------------------------------
Joint venture a) A special purpose vehicle will be incorporated
structure for a Nominated Property ("Project JV Company").
b) On a decision to mine Bezant will be nominated
as the operator and on a best endeavour's basis
will be responsible for seeking funding for
the Project JV Company.
c) 70% of all cash flows will be paid to Caerus
until their exploration expenditure has been
repaid and thereafter Bezant will receive 80%
of all operating cashflows.
d) If Bezant wishes to fully fund an operation
and Caerus does not wish to proceed then Bezant
may proceed with the development of the mine
providing Caerus with a 10% free-carried interest,
after reimburse of Sunk Costs.
-------------------- -------------------------------------------------------
Background on the Caerus' Cyprus Properties
The Caerus' Cyprus Properties break down into three copper-gold
project areas: Kalavasos, Vrechia and Mathiatis. All project areas
have evidence of historical exploration and mining. All permits
have good access via surfaced and unsurfaced routes.
-- The Kalavasos Project comprises five prospecting permits totalling 17.95 km(2) .
-- The Vrechia Project comprises one prospecting permit totalling 1.96 km(2) .
-- The Mathiatis Project comprises two prospecting permits totalling 2.06km(2) .
The Kalavasos Project area includes several abandoned mines,
associated waste dumps and exposed gossans. Widespread ancient mine
workings and slag dumps remain from the pre-Roman era of
exploitation. In many cases, strong gossanous alternation at
surface was targeted for gold and silver.
The Vrechia Project area includes the historic Mala pyrite mine
and several known prospects. The area is characterised by the
contact between the volcanic and sedimentary units along the
southern flank of the Troodos Ophiolite Complex. Volcanic vents
have been mapped in the area and are considered to be prospective
for VHMS systems. The area is cut by numerous
northwest-southeast-trending faults, which may be important for
hydrothermal fluid flow and resultant deposition of potentially
metal-rich fluids.
The Mathiatis Prospect area is in the north eastern part of the
Troodos Ophiolite. There has been extensive mining locally, with
five abandoned mines within the general project area. Granted
Licence EA4649 covers the North Mathiatas mine where 2.1 Mt of
pyrite ore at 0.2 % Cu was reportedly mined. There are also reports
that between 1936 and 1938, 26,691 oz of Au and 154,719 oz of Ag
were recovered from near-surface mining at 36 North Mathiatas and
nearby South Mathiatas mines. There are significant dumps at North
Mathiatas and other sites of prospectively.
(Source of the information regarding the Caerus' Cyprus
Properties is Caerus' Prospectus dated 4 March 2021 which
incorporates an independent technical report dated 18 December 2020
prepared for Caerus by Rocklore Exploration Services Limited, in
accordance with the accepted principles of the NI 43-101 code).
For further information, please contact:
Bezant Resources Plc
Colin Bird
Executive Chairman +44 (0)20 7581 4477
Beaumont Cornish (Nominated Adviser)
Roland Cornish +44 (0) 020 7628 3396
Novum Securities Limited (Broker)
Jon Belliss +44 (0) 20 7399 9400
or visit http://www.bezantresources.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
Qualified Person:
Technical information in this announcement has been reviewed by
Edward (Ed) Slowey, BSc, PGeo, technical director of Bezant
Resources Plc . Mr Slowey is a graduate geologist with more than 40
years' relevant experience in mineral exploration and mining, a
founder member of the Institute of Geologists of Ireland and is a
Qualified Person under the AIM rules. Mr Slowey has reviewed and
approved this announcement.
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