Bezant Resources to sell 80% of Mankayan project
announced on Monday that it is to sell 80% of Bezant’s interest in the Mankayan copper-gold project in the Philippines, to a private company in Singapore.
Bezant said it intends to sell its interest to Mining and Minerals Industries Holding Pte Ltd (MMIH), for S$10 million in equity and approximately £5 million in funding commitments for the project.
MMIH previously agreed to vend certain mining assets in the Philippines to Singapore Stock Exchange listed China Hongxing Sports Limited (CHX), which constitutes an RTO under Singapore rules.
The agreement would see Bezant issued with S$10 million (£5.87m) worth of shares in the Singapore Stock Exchange listed company but is conditional on Bezant shareholder approval.
Shares in Bezant were trading as much as 118% higher at 0.295p a share following the news
The company told investors that it believes the transaction as the best option to secure medium to long term value from the Mankayan project, given the level of funding required and the offer of £5.9m in equity being significantly higher than its prevailing market capitalisation.
If the transaction goes through, MMIH is to fund up to US$2.25 million for work programmes under the original Mineral Production Sharing Agreement, and a further S$5.5 million for a definitive feasibility study, subject to the approval of relevant Philippine authorities.
Laurence Read, CEO of Bezant, said: "The Mankayan Project is a significant copper-gold property and this agreement enables us to secure funding to progress the project whilst generating value for the Company and its shareholders going forwards from a 20% shareholding in Asean Copper and a potential additional indirect minority interest in the project via a shareholding in a Singapore listed entity.”
He added: “If Bezant's shareholders duly approve the Proposed Transaction at the requisite general meeting, which will be convened shortly, we look forward to working with MMIH to progress operations and new exploration opportunities at Mankayan as MMIH continues its preparations in respect of the proposed listing of MMJV on the Singapore Stock Exchange in the RTO Transaction."
If the transaction goes through Bezant will continue to operate as a copper-gold exploration and development company with its retained interest in the Mankayan Project, wholly owned Eureka Project in Argentina and its conditional option over a 50 per cent. interest in the Buffalo Project in Zambia.
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