Bezant Resources to acquire 100% of Virgo Resources
Virgo holds a 70% interest in Hepburn Resources which owns majority (70%/80%) stakes in the Namibian companies which hold the EPL5796, EPL6605 and EPL7170 licences.
EPL5796, EPL6605 and EPL7170 make up the Hope project and cover 345km2, 579km2 and 310km2 respectively, totalling over 1,200km2 within the Matchless Copper Belt in Namibia.
The total consideration for the acquisition is to be settled by a mixture of cash and shares in Bezant including an initial cash consideration of £85,600.
Upon completion of the acquisition, which is subject to a 30-day due diligence period, Bezant will issue 422,062,525 new ordinary shares, at a deemed issue price of 0.2p per share, a 67% premium to yesterday’s closing middle market share price of 0.12p
In addition, £135,000 is to be settled by the issue of new Bezant Shares based on the share price on the day of settlement.
"This acquisition represents a major additional contribution to Bezant's copper gold portfolio,” said Executive Chairman of the group, Colin Bird, of the project which holds 10.2 million tonnes JORC category grade of about 1.9% copper and 0.3 g/t of gold.
Shares in Bezant Resources closed at 0.12p on Thursday afternoon.
The area under licence is 92,310 hectares with an application pending for a further 30,960 hectares with the application pending being contiguous with EPL5796 and EPL6605.
The project area has good infrastructure and a history of successful mines owned by major mining companies, Bezant noted, adding that Namibia holds ‘good copper and zinc potential.’
“The acquisition represents an excellent opportunity to acquire a position in a significant JORC resource with good grades and a gold contribution,” Bird commented.
He added, “Namibia is an excellent jurisdiction with a long history of mining in the country and the project is in an area with good infrastructure.
There exists considerable potential for discovering more copper and gold within the sizable licence area and we look forward to advancing this exciting project in the short term."
Meanwhile, the company has also raised £350,000 before expenses via a placing of 406,250,000 new ordinary shares at a price of 0.08p, a 33% discount to Thursday’s closing middle market price of 0.12p.
This was executed via Novum Securities as well as a subscription from Colin Bird who has invested £25,000 for 31,250,000 shares at 0.08p, 7.14% of the total fundraising amount.
The proceeds will be used to progress the company’s evaluation of the Kalengwa project in Zambia, as well as geophysics and geochemistry in relation to the Hope Copper-Gold project.
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