TIDMBZT
RNS Number : 2171K
Bezant Resources PLC
19 September 2016
19 September 2016
Bezant Resources Plc
("Bezant" or the "Company")
Equity fundraising of approximately GBP1.19m gross
Bezant (AIM: BZT), the AIM quoted mineral exploration and
development company, is pleased to announce that it has raised, in
aggregate, GBP1,189,000 (approximately US$1.55 million) before
expenses, through a conditional placement, via Beaufort Securities
Limited ("Beaufort Securities"), of 38,400,000 new ordinary shares
of 0.2 pence each in the capital of the Company (the "Placing
Shares") (the "Placing") and a subscription for 21,050,000 new
ordinary shares of 0.2 pence each in the capital of the Company
(the "Subscription Shares") (the "Subscription") by certain new and
existing investors, both at a price of 2.0 pence per new ordinary
share (the "Fundraising Price").
The Fundraising Price represents a discount of approximately
27.3 per cent. to the closing mid-market price of 2.75 pence per
ordinary share on 16 September 2016 (being the latest practicable
business day prior to the date of this announcement).
The Placing and Subscription are conditional on admission of the
Placing Shares and the Subscription Shares to trading on AIM
("Admission"). Following Admission, the Placing Shares and the
Subscription Shares will represent, in aggregate, approximately
30.29 per cent. of the Company's enlarged issued ordinary share
capital.
The Placing Shares have been conditionally placed by Beaufort
Securities, as agent of the Company, with certain existing and new
institutional and other investors pursuant to a placing agreement
(the "Placing Agreement"). Under the terms of the Placing
Agreement, Beaufort Securities will receive commission from the
Company conditional on Admission of the Placing Shares and the
Company will give customary warranties and undertakings to Beaufort
Securities in relation, inter alia, to its business and the
performance of its duties. In addition, the Company had agreed to
indemnify Beaufort Securities in relation to certain liabilities
that it may incur in undertaking the Placing. Beaufort Securities
has the right to terminate the Placing Agreement in certain
circumstances prior to Admission, in particular in the event that
there has been, inter alia, a material breach of any warranties.
The Placing is not being underwritten.
In addition to the Placing and Subscription, certain Directors
of the Company intend to receive settlement of a proportion of
their outstanding directors' fees and salaries for various time
periods from 1 June 2016 up to the date of this announcement, via
the issue of new ordinary shares, further details of which will be
announced in due course.
Use of Funds & Near-term Production Strategy
The net proceeds raised from the Placing and Subscription will
be utilised towards funding the Company's planned exploration and
development work programme on its near surface platinum and gold
assets located in the Choco Region of Colombia, over which it holds
certain options, and for the group's general working capital
purposes.
Further to the Company's announcement of 7 September 2016,
mobilisation has begun on the FKJ 083 licence area and mining
contractors, Exumax S.A.S. ("Exumax"), are on site preparing their
equipment to begin excavation and bulk sampling activities.
Bezant's geologists and mining engineers will work alongside
Exumax, a Colombian based alluvial and near surface mining
specialist, to begin the removal of overburden and then test the
first alluvial gravels for free platinum and gold. The group has a
full mining permit in place in respect of the FKJ 083 licence area,
which was historically mined between 2007 to 2012. During 2016,
Bezant has undertaken an extensive analysis of the historic mining
data for this area from various sources, including information
submitted to the relevant Colombian tax authorities, covering the
previous owner's production period and inclusive of revenues and
costs. The Company intends to use bulk sampling and test pitting to
analyse production rates and correlate results with the
pre-existing data. Bezant will also seek to test certain
assumptions relating to potential improved recovery rates using
Exumax's equipment circuits.
Exumax has approximately six years' experience operating
alluvial mining projects in Colombia and imported the first
specialist alluvial mining equipment from New Zealand to be used
specifically for near-surface production operations. Details of the
exploration agreement entered into between Exumax and Bezant were
announced on 7 September 2016.
Following the platinum and gold recovery results from the
abovementionned exploration and development work programme, Bezant
will make a decision whether to:
1. Exercise all of its options over a 2,600 hectare land package in the region; and
2. Enter into name-plate mine development operations at FKJ 083.
Further to the Company's announcement of 7 September 2016,
completion of the acquisition of Birkenhead Estates S.A., in
connection with the Company's exploration agreement with Exumax, is
now expected to occur next week and a further announcement
confirming completion will be made in due course.
Related party transaction
Pursuant to the abovementionned Subscription, Tomori Enterprises
Limited ("Tomori") is investing GBP250,000 for 12,500,000
Subscription Shares. By virtue of Tomori currently being a
substantial shareholder in the Company, Tomori's participation in
the Subscription constitutes a related party transaction for the
purposes of Rule 13 of the AIM Rules for Companies. Accordingly,
the directors of Bezant consider, having consulted with Strand
Hanson Limited (the Company's Nominated Adviser), that the terms of
Tomori's participation in the Subscription are fair and reasonable
insofar as the Company's shareholders are concerned.
On Admission, Tomori will be interested in 46,635,115 ordinary
shares representing approximately 23.76 per cent. of the Company's
enlarged issued ordinary share capital.
Application to trading on AIM
Application will be made to the London Stock Exchange for the
Placing Shares and the Subscription shares to be admitted to
trading on AIM. It is expected that Admission will become effective
and that dealings in the Placing Shares and the Subscription Shares
will commence at 8.00 a.m. on 30 September 2016.
Following the issue of the abovementioned Placing Shares and
Subscription Shares, the Company's total issued share capital will
consist of 196,283,162 ordinary shares with voting rights. The
Company does not hold any ordinary shares in treasury and
accordingly there are no voting rights in respect of any treasury
shares. The Placing Shares and Subscription Shares will be fully
paid and will rank pari passu in all respects with the Company's
existing ordinary shares.
On Admission, the above figure of 196,283,162 ordinary shares
may be used by shareholders in the Company as the denominator for
the calculations by which they will determine if they are required
to notify their interest in, or a change to their interest in,
Bezant under the Financial Conduct Authority's Disclosure and
Transparency Rules.
Edward Nealon, Chairman of Bezant, commented:
"Following an intensive circa nine month period of work in
Colombia and the recent signing of the exploration agreement with
Exumax, we are now ready to begin stripping overburden from our
first focus area with a view to then testing production and
recovery rates for platinum and gold. We believe we have a first
mover advantage in the platinum fields of Colombia and with options
over significant land areas we must now rapidly conduct our own
production tests to better understand the mining enviroment and
compare our results with the available historic mining data.
Working closely with Exumax, the first specialist alluvial mining
equipment is now being installed in the Colombian platinum zone in
the Choco Region and I look forward to announcing our progress in
due course as we begin to access the near-surface alluvial
gravels."
For further information, please contact:
Bezant Resources Plc
Bernard Olivier Tel: +61 40 894 8182
Chief Executive Officer
Laurence Read Tel: +44 (0)20 3289 9923
Executive Director / Communications
Officer
Strand Hanson Limited (Nomad) Tel: +44 (0)20 7409 3494
James Harris / Matthew Chandler
/ James Dance
Beaufort Securities Limited Tel: +44 (0)20 7382 8300
(Broker)
Elliot Hance
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 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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September 19, 2016 08:00 ET (12:00 GMT)