Bezant Resources vales Mankayan copper-gold transaction at £42m
has updated investors on its transaction in relation to the disposal of its 80% of its interest in the Mankayan copper-gold project in the Philippines.
The copper-gold exploration and development group previously entered into a conditional transaction agreement with Mining and Minerals Industries (“MMIH”) back in October 2019.
Under the terms of the agreement, MMJV, a wholly owned subsidiary of MMIH, will acquire an 80% shareholding in Asean Copper Investments, a special purpose vehicle incorporated in the British Virgin Islands through which Bezant owns its interest in the Mankayan Project.
Today, Bezant said a non-binding term sheet, subject inter alia to due diligence, has been signed by AsiaPhos Ltd ("AsiaPhos"), a company listed on the Singapore Exchange Securities Trading Limited Catalist Board, in order for the company to acquire MMJV for the lower of:
- S$72m (approx. £42m)
- 50% of an independently Agreed Valuation (as defined below)
If the Proposed AsiaPhos Acquisition (defined below) is completed then, under the terms of the Transaction between Bezant and MMIH, Bezant is due to be issued S$10m (circa. £5.6m) of shares in the listed entity holding MMJV.
Shares in Bezant Resources reacted positively to the news trading 37% higher this morning.
"We are pleased that the exploration period under the MPSA has been extended to its expiry on 11 November 2021 and that the expenditure requirements have been reduced,” said Colin Bird, Executive Chairman of Bezant.
He added, “We are also pleased that MMIH are progressing with a proposed listing on a recognised stock exchange, the SGX being a suitable venue for the listing of an Asian asset.”
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