Update re Mkurumu Project, Tanzania

RNS Number : 0790A

Bezant Resources PLC

27 March 2012

 



27 March 2012

Bezant Resources Plc

("Bezant" or the "Company")

Update re Mkurumu Project, Tanzania

 Termination of Existing Joint Venture Agreement and Reduction of Interest

Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines, Argentina and Tanzania, announces that its wholly-owned subsidiary, Anglo Tanzania Gold Limited ("ATGL"), has agreed to the termination of its existing Joint Venture Agreement (the "Existing Agreement") with Ashanti Exploration (Tanzania) Limited ("AETL") in respect of the Mkurumu Project, situated in the Mkurumu Area, Kilindi District, Tanga Region, Tanzania.

Under the Existing Agreement, ATGL held a 46 per cent. interest in the Mkurumu Project alongside AETL. As previously reported, Bezant's Board fully impaired all of the exploration costs incurred in respect of the Company's Tanzanian projects in the Company's 2010 financial year, in the absence of achieving an Inferred Resource estimate within any of the defined tenement areas. The Company has negotiated a new agreement, subject to the receipt of any necessary approvals from the Reserve Bank of South Africa and the Government of Tanzania, whereby ATGL will now hold a reduced free carried interest of 5 per cent. along with a Net Smelter Return Royalty of 2 per cent. of any potential  future Net Smelter Return due to AETL, and ATGL will also not be expending any further exploration costs on the Mkurumu Project.

Gerry Nealon, Executive Chairman of Bezant, commented:

"This new agreement, whilst terminating our existing joint venture arrangements, obligations and liabilities in respect of the Mkurumu Project, enables us to maintain an interest in the project and a potential future net smelter return royalty without any obligation to meet any further exploration costs. Given the status of this fully impaired project, we regard this agreement as being in the best interests of the Company going forward, especially with regards to maintaining our cash reserves in the current uncertain and volatile global economic conditions".

For further information, please contact:

Gerry Nealon Executive Chairman, Bezant Resources Plc                              Bernard Olivier Chief Executive Officer, Bezant Resources Plc                                James Harris / Matthew Chandler / David Altberg Strand Hanson Limited                                                           James Maxwell / Jenny Wyllie Singer Capital Markets Limited                                               Beth Harris Newgate Threadneedle (UK) or visit http://www.bezantresources.com

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

Notes to Editors:

Copper-Gold Exploration Track Record

In 2007, Bezant acquired a little known copper-gold target for approximately 5.5 million shares and US$500,000 cash. Over a period of approximately three years the Company has proved up JORC Compliant Probable Ore Reserves of 189 million tonnes grading at 0.46% copper and 0.49g/t gold, resulting in total Recoverable Metal Reserves of 811,000 tonnes of copper and 2.21 million ounces of gold for an exploration cost of approximately US$5 million. On 26 October 2011, the grant of an option to Gold Fields Netherlands Services BV ("Gold Fields") for the potential sale of the Mankayan Project for US$63 million in addition to an upfront Option fee of US$7 million was ratified by shareholders. Bezant intends to return a significant amount of cash to its shareholders following such a disposal in due course in addition to progressing its near surface Eureka copper-gold project in Argentina.

 

END

 

 

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