BZT Bezant Resources Plc

30 September 2024

Bezant Resources Plc

("Bezant" or the "Company")

Interim Results for the Six Months Ended 30 June 2024

Bezant (AIM: BZT), the copper-gold exploration and development company, announces its unaudited interim results for the six months ended 30 June 2024.

Chairman's Statement

Dear Shareholders,

The focus of the first half of 2024 continues to be Southern Africa in particular preparatory technical and commercial work in anticipation of the granting of a mining licence in Namibia for our Hope and Gorob Project.

General economic and political environment: During the period of the interim results the world has not materially changed but geopolitical tension has probably worsened due to the ongoing impact of the Ukraine war and related sanctions and escalation of conflicts in the Levant area of the Middle East. This is a macro-economic situation which does not have a direct impact on the Company as it does not have assets in or have business activities or suppliers in either Ukraine. Russia or the Levant areas of the Middle East.

The financial world is seeing some inflation control and against this optimism, we are seeing interest rates being lowered in the USA appearing to be the most aggressive.  The latest significant 50bp decrease may be too soon and the next few months will test question. The stock markets have responded favourably and are not anticipating a re-ignition of inflation.  Should they be wrong, then we might well see a perfect climate for commodities. 

Financial highlights:

£487K loss after tax (unaudited 30 June 2023: £463K)

Approximately £156K cash at bank at the period end (audited 31 December 2023: £560K).

Operational and corporate events in six months to 30 June 2024

In Namibia: The Hope and Gorob project in Namibia (in which Bezant holds a 70% interest) is extremely well placed, since it is ready for production and has the ability once fully explored, to achieve Tier 1 status.  We are currently awaiting a mining licence and have reached the point where all key considerations have been addressed technically and financing offers are under consideration in an advance form. 

During the period, most technical factors have been considered and we are convinced that at least the first five years ore supply can be provided from a number of mini pits, which on the medium term can access high grade underground material, providing a long-life operation.  During the early years, we will conduct an aggressive drilling programme, which has the potential to upscale the operation to a larger operation after the provision of a processing plant.

In Botswana: the Kanye battery manganese project is showing the potential to be larger than originally anticipated and our previous work has demonstrated that we can produce a battery suitable product from the deposit.  We are aware that Giyani Metals Corp announced in September 2024 the issue of a mining licence for their K. Hill manganese project which is close to the Kanye project area and we take this as a positive sign of the willingness of the Botswana government to support manganese mining.

In Zambia: Our collaboration agreement with PCB Mining Ltd, which has gold interest in the Northwest Zambia is progressing favourably and our geological team and technical staff are assisting shareholders in their efforts to restart the operation and conduct production-focused exploration.

Investment in Mankayan Project in Philippines: IDM International Ltd the Australian holding company and Crescent Mining Development Corporation the licence holder continue to make good progress with the Mankayan project in the Philippines and we are hopeful that our 22.96% interest in IDM International will be monetised in one form or another.  The Mankayan project is well drilled and well studied and has the potential to be a meaningful contributor to the world's future copper demands.

Eureka Project Argentina: Our Eureka licences in Argentina have attracted interest from a number of parties and we continue to hold site visits and discussions with interested parties.

Funding: In March long term shareholder Sanderson Capital Partners Limited agreed to an extension of our Facility with them to 31 July 2025 and we are grateful for their continuing support.

Issue of Equity: No shares were issued during the period.

Operational and corporate post period end events

Post the period end we have on the following dates announced;

·      24 July 2024: the signing of a letter of intention for a partnership for the delivery of a sustainable renewable solar energy supply for the Hope & Gorob project;

·      27 August 2024: that geophysical surveying has extended the potential target at the Kanye manganese project;

·      28 August 2024: the issue of an Environmental Clearance Certificate for exploration licence EPL 717O valid through to 12 August 2027; and

·      26 September 2024: the renewal of exploration licence EPL 6605 for two years to 28 August 2026.

Outlook: Copper is showing resilience in the USD9,000 range per tonne, with resistance against fundamentals which are inescapable when making a case for copper.  The demand side is continuing despite a slow down in the Chinese economy and the EV story slowing down because of structural problems.  The demand side is unstoppable, based on third world development bringing disposal income and the emergence of India, which could be as rapid as China was commencing some 20 years ago.

The supply side is dismal from whichever angle it is viewed and there is no quick fix to this situation.  What is surprising is the lack of recognition by the Mining Industry of a seriously worsening problem.  Mergers and acquisitions do not create new copper.  We believe the small and medium sized new copper projects currently being planned or developed may assist with a short-term solution but by no means solve it.

In terms of our own projects we continue to have several ongoing discussions regarding finance and resource collaboration for their advancement and will update shareholders as we have news to report.

I would like to thank my fellow directors and management in their untiring efforts to enhance shareholder value in what must be the most difficult period in the small natural resource sector.

Colin Bird

Executive Chairman

30 September 2024

For further information, please contact:

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 Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

Group Statement of Profit and Loss

For the six months ended 30 June 2024

Group Statement of Other Comprehensive Income

For the six months ended 30 June 2024

Group Statement of Changes in Equity

For the six months ended 30 June 2024

¹ Other reserves is made up of the share-based payment and foreign exchange reserve.

Group Balance Sheet

As at 30 June 2024

Group Statement of Cash Flows

For the six months ended 30 June 2024

Notes to the interim financial information

For the six months ended 30 June 2024

As announced on 30 June 2022 the Company further to its announcement of 23 November 2021 confirmed that it had issued two drawdown notices of £350,000 each ("Tranche 1" and "Tranche 2") for a total amount of £700,000 (the "Original 2022 Convertible Loan") under its £1,000,000 interest free unsecured convertible loan funding facility with Sanderson Capital Partners Ltd (the "Lender"), a long-term shareholder in the Company (the "Facility"). The amount drawdown was interest free and repayable in 12 months or can be converted at any time at the Lender's option into Bezant shares at fixed prices for Tranche 1 of  £350,000, at 0.19 pence per share and for Tranche 2 of £350,000 at 0.225 pence per share. As the conversion feature results in the conversion of a fixed amount of stated principal into a fixed number of shares, it satisfies the 'fixed for fixed' criterion and, therefore, it is classified as an equity instrument. The value of the liability component of £546,000 and the equity conversion component of £154,000 were determined at the date of the drawdowns. The fair value of the liability component, included in current borrowings, at inception was calculated using a market interest rate for an equivalent instrument without conversion option. The discount rate applied was 25%.

Under the terms of the Facility the Lender is due;

a) a drawdown fee of £14,000 being 2% of the amount drawdown which was settled by the issue of 12,522,361 new ordinary shares of £0.00002 each ("Shares") credited as fully paid at 0.1118 pence per share being the five-day VWAP on 28 June 2022 (the "Drawdown Fee Shares"); and

b) £350,000 of three year warrants over Shares (the "Warrants"). The exercise price for the Warrants are as follows:

·      £175,000 at 0.25 pence per share for the drawdown of Tranche 1; and

·      £175,000 at 0.30 pence per share for the drawdown of Tranche 2.

On 15 June 2023, the Company announced, it had by an agreement dated 14 June 2023 agreed with the Lender to extend the repayment date for the Drawdowns to 23 December 2024 (the "New Repayment Date") and adjusted the conversion prices of Tranche 1 and Tranche 2 to 0.08 pence per share (the "New Conversion Price"). The Company as a loan extension fee i) paid the Lender a £70,000 facility extension and documentation fee equivalent to 6.67% per year which was settled by the issue of 87,500,000 new ordinary shares of 0.002p each ("Shares") at the New Conversion Price  ("Facility Extension Fee Shares"); and ii) issue the Lender 437,500,000 warrants over Shares exercisable at 0.12 pence per Share (the "Warrant Exercise Price") exercisable for two years from the date of the Agreement. (the "Facility Extension Fees"). The Company has an option to convert all or part of the £700,000 drawdown if the Company's share price exceeds 0.14 pence for 10 or more business days (the "Modified Terms").

The Company determined that the Modified Facility was in accordance with IFRS 9 substantially different from the terms of the Facility and that therefore the equity instrument comprising the Original Facility was deemed to be repaid on 15 June 2023.

The Modified Facility is an equity instrument as the conversion feature results in the conversion of a fixed amount of stated principal into a fixed number of shares, so it satisfies the 'fixed for fixed' criterion and, therefore, it is classified as an equity instrument which requires the valuation of the liability component and the equity conversion component. The fair value of the liability component, included in current borrowings, at inception was calculated using a market interest rate for an equivalent instrument without conversion option. The discount rate applied was 25%.

On 5 March 2024 the Company announced that by an agreement dated 4 March 2024 it had agreed with the Lender to extend the repayment date for the £700,000 drawn down under the Facility to 31 July 2025 and that the £700,000 drawn down is now convertible by the Lender at the fixed price of 0.06 pence per share (the "New Conversion Price") (the "Extended Facility") .

The Company determined that the Extended Facility was in accordance with IFRS 9 not substantially different from the terms of the Modified Facility and that therefore the Modified Facility has not been deemed repaid when the Extended Facility terms were agreed.