General Meeting Statement

RNS Number : 8197Q

Bezant Resources PLC

26 October 2011

 



26 October 2011

Bezant Resources Plc

("Bezant" or the "Company")

General Meeting Statement

Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines, Argentina and Tanzania, will hold its General Meeting at 10.00 a.m. today at the offices of Joelson Wilson LLP, 30 Portland Place, London W1B 1LZ.

The General Meeting is being held to seek Shareholders' approval to the grant of an option (the "Option") for the disposal of Asean Copper Investments Limited ("Asean") to Gold Fields Netherlands Services BV ("Gold Fields") pursuant to the terms of an option agreement entered into between, inter alia, Bezant, Asean and Gold Fields on 4 October 2011 (the "Option Agreement"). Asean holds Bezant's entire interest in its flagship copper/gold Mankayan Project in the Philipinnes. In summary, the Option Agreement delivers a non-refundable, upfront cash payment of US$7 million to Bezant and a potential further cash sum of US$63 million payable, on exercise of the option by Gold Fields, to acquire the entire issued share capital of Asean.The option may be exercised by Gold Fields at any time until 31 January 2013.

Gerry Nealon, Executive Chairman, will make the following statement at the General Meeting:

"The proposed Option grant follows the completion of a comprehensive and lengthy strategic review and sale process and the Board continues to believe that it represents the best means of realising value for our Shareholders in the near term.

In the event that the Option is exercised and the sale and transfer of the issued shares in Asean is completed the Company anticipates that approximately 50% of the gross sale proceeds will potentially be available for distribution to Shareholders.  A return of cash to Shareholders will be subject, inter alia, to obtaining professional advice from our financial, legal and tax advisers and prevailing exchange rates at the appropriate time, and taking into account the view of Shareholders at that time (as appropriate). Of the 50% of funds retained, all taxes will be paid out of this sum with the remainder being retained to progress the Company's copper/gold exploration portfolio. 

Bezant continues to operate as a mineral exploration company and will continue with its ongoing work programme at the Company's near surface copper-gold project ("Eureka") in Argentina.

In the event that the Option is not exercised and lapses or terminates, we intend to use the proceeds from the non-refundable Option fee to fund our ongoing work programme and further development of our Eureka Project in Argentina and for general working capital purposes."

Unless stated or the context otherwise requires, defined terms used in the Circular dated 5 October 2011 also apply in this announcement.

For further information, please contact:

Gerry Nealon Executive Chairman, Bezant Resources Plc                              Bernard Olivier Technical Director, Bezant Resources Plc                                James Harris / Matthew Chandler / David Altberg Strand Hanson Limited                                                           James Maxwell / Jenny Wyllie Singer Capital Markets Limited                                               Laurence Read / Beth Harris Threadneedle Communications (UK) Email: [e-mail]  or visit http://www.bezantresources.com

Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone]

Notes to editors:

The 11 licences comprising the Eureka Project are located in north-west Jujuy near to the Argentine border with Bolivia and are formally known as Mina Eureka, Mina Eureka II, Mina Sur Eureka, Mina Gino I, Mina Gino II, Mina Mason I, Mina Mason II, Mina Julio I, Mina Julio II, Mina Paul I and Mina Paul II, covering, in aggregate, an area in excess of approximately 5,500 hectares and accessible via a series of gravel roads.  To date, no JORC compliant or equivalent resource estimate has been established, but historic exploration activities have been conducted on the project area since the 1980s by Minera Penoles, Codelco and Mantos Blancos, with unaudited unclassified estimates in the order of, in aggregate, up to approximately 62 million tonnes grading at 1% copper and approximately 52,000 ounces of gold as credits.  The copper oxide mineralisation occurs in loosely consolidated conglomerates and is the focus of the project's economic potential.  The near surface mineralisation is amenable to heap leaching, while the carbonate content of the conglomerate is reported to be low, thereby reducing potential acid consumption.

 

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