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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bezant Resources Plc | LSE:BZT | London | Ordinary Share | GB00B1CKQD97 | ORD 0.002P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.0205 | 0.018 | 0.023 | 0.0205 | 0.0205 | 0.0205 | 2,453,483 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | 1.44M | 0.0002 | 1.00 | 1.54M |
From Apr 2019 to Apr 2024
TIDMBZT
RNS Number : 2120S
Bezant Resources PLC
29 September 2017
29 September 2017
Bezant Resources Plc
("Bezant" or the "Company")
Interim Results for the Six Months Ended 30 June 2017
Bezant (AIM: BZT), the AIM quoted gold and platinum mining company, announces its unaudited interim results for the six months ended 30 June 2017.
Highlights:
Platinum and Gold Mining Project, Choco District, Colombia:
-- Recovered first gold and platinum metals, working closely with local services partner Exumax S.A.S ("Exumax")
-- Project's economics established
o Rapidly establishing production economics for the FKJ-083 licence area, correlating the historic mining data from previous third party operations with current exploration and processing results
o Independent analysis of production sensitivities via scoping study commissioned from INGEX Grupo Minero SAS ("INGEX") which reported estimated total production costs of US$768/oz for platinum and gold recoveries
-- Acquisition of environmentally friendly production capability
o Acquired and mobilised to site a fully-equipped, purpose built modern mercury-free alluvial processing plant, being;
-- capable of processing up to 100m(3) of material per hour (approximately 150 tonnes per hour); and
-- first modern plant of its kind to be utilised on the deposit
o Secured full plant engineering blue prints, technical plans, schematics and data to enable Bezant to replicate and manufacture similar processing plants in Colombia
o Commissioned the processing plant in June 2017 in preparation for first production in Q3 2017
Corporate:
-- GBP1.2m expenditure on the Choco platinum-gold project's development programme including the above mentioned plant acquisition and exercising of certain licence options
-- GBP1.0m raised before expenses in March 2017, through a placement of 100,000,000 new ordinary shares with certain new and existing investors, at a price of 1.0 pence per share
Post Period End
-- A further GBP585,000 raised (before expenses) in early July 2017 through a placement and subscription for, in aggregate, 68,823,529 new ordinary shares by certain new and existing investors, at a price of 0.85 pence per share
-- Approximately GBP160,000 of certain accrued unpaid director, senior management and consultancy fees and salaries satisfied via the issue of, in aggregate, 12,359,642 new ordinary shares at a price of 1.2976 pence per share in early August 2017 in order to conserve cash reserves within the Company and maximise the funds available for the group's operations
-- In July 2017, Registro Unico de Comercializadores de Minerales ("RUCOM") was received from the Colombian National Mining Agency (ANM - Agencia Nacional de Mineria) enabling the sale of platinum and gold to regulated metals trading houses both in Colombia and internationally
-- Peterhouse Corporate Finance Limited appointed as a Broker to the Company -- Production commenced at the Choco Project
o Extraction and processing on the FKJ-083 licence area from the lower-grade upper layers of gravels, tailings and overburden
o Sale achieved of first kilogramme of gold and platinum metals produced from the Choco Project
o Pit development works to access the 'virgin' higher-grade lower level gravels for processing by mid-October 2017
-- Exploration programme ongoing on the HGE-082 licence area with respect to assessing the potential for future mining, involving test pitting and sampling activities, with results expected by Q4 2017
Commenting today, Bernard Olivier, CEO of Bezant, said:
"During the period under review, we undertook the necessary preparations to enable the commencement of gold-platinum recovery operations at the group's wholly owned Choco Project in Western Colombia. Following this solid ground work, involving the commitment of over GBP1 million to the project's operations during the first half of 2017, Bezant is now successfully mining gold and platinum in Colombia. Our first precious metals have been sold and we are currently seeking to access the deeper levels of alluvial gravels where significantly higher grades are expected to be encountered. I look forward to providing further updates on our progress on the ground in due course."
For further information, please contact:
Bezant Resources Plc Bernard Olivier Tel: +61 40 894 Chief Executive Officer 8182 Laurence Read Executive Director / Communications Tel: +44 (0)20 Officer 3289 9923 Strand Hanson Limited (Nomad) James Harris / Matthew Chandler Tel: +44 (0)20 / James Dance 7409 3494 Peterhouse Corporate Finance Limited (Broker) Tel: +44 (0)20 Lucy Williams / Duncan Vasey / 7469 0930 Heena Karani Beaufort Securities Limited (Broker) Tel: +44 (0)20 Elliot Hance 7382 8300 or visit http://www.bezantresources.com
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Chairman's Statement
I am pleased to present the group's unaudited interim results for the six-month period ended 30 June 2017 and to report on the Company's ongoing activities to the date of this statement. Reflecting our ongoing activities, the unaudited consolidated results for the six-month period ended 30 June 2017 show a loss after tax of GBP1,006,000 (31 December 2016: GBP1,180,000; 30 June 2016: GBP8,865,000).
The first half of 2017 saw everyone involved in Bezant's Choco Project focus entirely on the preparatory work required to enable commencement of gold and platinum production on site in Colombia. Working closely with experienced local operational partners, Exumax S.A.S. ("Exumax"), the Company has ensured that shareholder funds have been efficiently deployed into building cash flow from gold and platinum mining operations. This essential work culminated in our first commercial production of gold and platinum metals with initial sales being achieved in Q3 2017. Mining on this first licence area, in addition to building cash flow, is key to us better understanding the production profile and thereby refining our business model in order to roll out planned further production plants across the more than 2,600 licenced hectares, in which the Company is currently interested, covering the extensive gold-platinum placer fields in the Choco region, where platinum was first discovered in the 19th Century.
The beginning of the year saw us working with Exumax to complete a series of surface and near-surface exploration activities on the FKJ-083 licence area. This area was previously mined by third parties between 2007 and 2012 and the Bezant-Exumax work programme focussed on correlating test open pit results with the historic mining and geological reports and platinum and gold recoveries. A large trial pit was completed over two phases with a total of 25,000m(3) of material being excavated during the first stage alone.
Within the period, we also reported the results from a total of 105 samples of alluvial material collected and processed through the pilot sampling plant. Concentrates from this operation were subsequently treated and analysed through the Company's onsite, mercury free, platinum and gold recovery laboratory. Combined platinum and gold grades of over 300mg/m(3) were achieved from shallow virgin platinum and gold bearing gravels. Although selected tailings' samples did return grades of over 100mg/m(3) the average grade for the tailings sampled was 30mg/m(3) which served to confirm and support the Company's view that treatment of the historic tailings dumps is likely to be uneconomic unless it forms part of the overburden located on virgin platinum and gold bearing gravels.
The grades achieved and test pitting analysis confirmed the historic third party reported grades and conditions encountered during historical mining operations and Bezant therefore proceeded to commission an independent cost analysis and scoping study on the project. This study was conducted by mining consultancy, INGEX Grupo Minero S.A.S., located in Medellin, Colombia, and its findings, announced in March 2017, supported our decision to commence production operations at Choco.
In March 2017, following completion of the abovementioned key workstreams, Bezant successfully raised GBP1m gross in order to fund certain option payments with respect to Mining Licences in Colombia, begin mine development and augment its working capital position.
Further to the positive recovery results from test pitting and the results of the independent scoping study, Bezant proceeded to exercise one of its existing options over two alluvial platinum and gold licences, namely FKJ-083 and HCA-082, in Colombia (the "Licences") (the "Option"). The Option was held by Bezant's wholly owned Colombian subsidiary, Ulloa Recursos Naturales SAS ("Ulloa"). Pursuant to the terms of the agreements relating to the acquisition of Ulloa's parent company, Leeward Islands Exploration LLC, in January 2016, the exercise price payable by Bezant to acquire the Licences was, in aggregate, US$300,000, with the first US$100,000 being paid within the period on serving the notice of exercise and the balance payable on or before 5 December 2017.
Having secured the Licences, Bezant then swiftly completed the acquisition of its first fully-equipped, purpose built, modern alluvial processing plant which was already situated in Colombia and ready for mobilisation to site, via the acquisition of Kellstown Investments Corp in early June 2017 for initial consideration comprising a cash payment of US$200,000 and the issue of 25 million new ordinary shares and deferred consideration of a further 15 million new ordinary shares payable when the plant has for 10 consecutive work days processed 900m(3) of material per day. The mercury-free alluvial processing plant is capable of processing up to 100m(3) of material per hour (approximately 150 tonnes per hour) and is the first modern plant of its kind to be utilised on the deposit. As part of our plan to eventually operate multiple low cost plants, we also acquired all of the technical material and data to enable us to manufacture additional low cost plants within Colombia itself in the future.
Post the reporting period end, we entered into a rapid mobilisation and commissioning stage and, at the time of writing, we have successfully sold our first kilogramme of precious metals production from the Choco Project to a Colombian commodity trading house and expect to shortly commence mining of the higher-grade, virgin, lower level gravels. Ramp-up will continue throughout the last quarter of 2017 as we extract, process and analyse the results of the deeper level, higher-grade alluvial gravels and we look forward to providing further updates in due course.
Mr Edward Nealon
Non-Executive Chairman
28 September 2017
Group Statement of Comprehensive Income
For the six months ended 30 June 2017
Hot Features
Premium
Notes Unaudited Audited Unaudited
Six months Six Months Six months
ended ended ended
30 June 31 December 30 June
2017 2016 2016
GBP'000 GBP'000 GBP'000
Continuing operations
Group revenue - - -
Cost of sales - - -
------------ ------------- ------------
Gross profit/(loss) - - -
Operating expenses (1,009) (1,027) (525)
------------
Group operating loss (1,009) (1,027) (525)
Other income 3 2 -
Impairment 3 - (155) (8,278)
Share of Associates'
loss - - (62)
------------ ------------- ------------
Loss before taxation (1,006) (1,180) (8,865)
Taxation - - -
------------ ------------- ------------
Loss for the period (1,006) (1,180) (8,865)
============ ============= ============
Attributable to:
Owners of the Company (1,006) (1,172) (8,849)
Non-controlling interest - (8) (16)
------------ ------------- ------------
2 (1,006) (1,180) (8,865)
============ ============= ============
Other comprehensive
income:
Foreign currency
reserve movement 23 (66) 339
------------ ------------- ------------
Total comprehensive
loss for the period (983) (1,246) (8,526)
============ ============= ============
Attributable to:
Owners of the Company (986) (1,235) (8,504)
Non-controlling interest 3 (11) (22)
------------ ------------- ------------
(983) (1,246) (8,526)
============ ============= ============
Loss per share (pence)
Basic and diluted 4 (0.34) (0.67) (8.17)
============ ============= ============
Consolidated Statement of Changes in Equity
For the six months ended 30 June 2017
Shares Non-Controll
Share Share to be Other Retained ing Total
Capital Premium issued Reserves Losses interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Unaudited -
six months
ended 30 June
2017
Balance at
1 January 2017 410 33,227 - 991 (27,756) (54) 6,818
Current period
loss - - - - (1,006) - (1,006)
Foreign currency
reserve - - - 20 - 3 23
Total comprehensive
loss for the
period - - - 20 (1,006) 3 (983)
--------- --------- --------- ---------- --------- ------------- ---------
Proceeds from
shares issued
(net of expenses) 200 694 - - - - 894
Warrants issued - - - 8 - - 8
Issue of ordinary
shares related
to business
combination 50 221 - - - - 271
Acquisition
of subsidiary
companies - - 163 - - - 163
Balance at
30 June 2017 660 34,142 163 1,011 (28,762) (51) 7,171
========= ========= ========= ========== ========= ============= =========
Audited - six
months ended
31 December
2016
Balance at
1 July 2016 274 32,048 - 1,054 (26,584) (43) 6,749
Current period
loss - - - - (1,172) (8) (1,180)
Foreign currency
reserve - - - (63) - (3) (66)
Total comprehensive
loss for the
period - - - (63) (1,172) (11) (1,246)
----- ------- ------ --------- ----- --------
Proceeds from
shares issued 122 1,031 - - - - 1,153
Issue of ordinary
shares related
to business
combination 14 148 - - - - 162
Balance at
31 December
2016 410 33,227 991 (27,756) (54) 6,818
===== ======= ====== ========= ===== ========
Unaudited -
six months
ended 30 June
2016
Balance at
1 January 2016 199 31,421 - 709 (17,735) - 14,594
Current period
loss - - - - (8,849) (16) (8,865)
Foreign currency
reserve - - - 345 - (6) 339
Total comprehensive
loss for the
period - - - 345 (8,849) (22) (8,526)
---- ------- ------ --------- ----- --------
Issue of ordinary
shares related
to business
combination 75 627 - - - - 702
Subsidiary
acquired - - - - - (21) (21)
Balance at
30 June 2016 274 32,048 - 1,054 (26,584) (43) 6,749
==== ======= ====== ========= ===== ========
Consolidated Balance Sheet
As at 30 June 2017
Unaudited Audited Unaudited
30 31 30
June December June
2017 2016 2016
Notes GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Plant and equipment 5 2,385 20 55
Intangible assets 6 316 1,834 1,620
Exploration and evaluation
assets 7 4,789 4,790 4,790
---------- ---------- ----------
Total non-current
assets 7,490 6,644 6,465
---------- ---------- ----------
Current assets
Trade and other receivables 121 73 115
Cash and cash equivalents 199 229 261
---------- ---------- ----------
Total current assets 320 302 376
---------- ---------- ----------
TOTAL ASSETS 7,810 6,946 6,841
----------
LIABILITIES
Current liabilities
Trade and other payables 639 128 92
---------- ---------- ----------
Total current liabilities 639 128 92
---------- ---------- ----------
NET ASSETS 7,171 6,818 6,749
========== ========== ==========
EQUITY
Share capital 8 660 410 274
Share premium 8 34,142 33,227 32,048
Shares to be issued 10 163 - -
Share-based payment
reserve 273 265 265
Foreign exchange reserve 746 726 789
Retained losses (28,762) (27,756) (26,584)
---------- ---------- ----------
EQUITY ATTRIBUTABLE
TO OWNERS OF THE PARENT 7, 222 6,872 6,792
NON-CONTROLLING INTEREST (51) (54) (43)
---------- ---------- ----------
TOTAL EQUITY 7,171 6,818 6,749
========== ========== ==========
Consolidated Statement of Cash Flows
For the six months ended 30 June 2017
Unaudited Audited Unaudited
Six Six
months Six months
ended months ended
30 ended 30 June
June 31 December 2016
2017 2016
Notes GBP'000 GBP'000 GBP'000
Net cash outflow from operating
activities 9 (576) (950) (525)
---------- ------------- ----------
Cash flows used in investing
activities
Other income 26 24 15
Acquisition of plant and
equipment (2) (3) -
Deferred exploration expenditure - - (2)
Option payments (net) (234) (91) 33
Acquisition of subsidiary,
net of cash acquired (155) - (669)
Loans to associates and subsidiaries - (155) (205)
----------
(365) (225) (828)
---------- ------------- ----------
Cash flows from financing
activities
Proceeds from issuance of
ordinary shares (net of issue
cost) 894 1,118 -
----------
894 1,118 -
----------
Decrease in cash (47) (57) (1,353)
Cash and cash equivalents
at beginning of period 229 261 1,550
Foreign exchange movement 17 25 64
---------- ------------- ----------
Cash and cash equivalents
at end of period 199 229 261
========== ============= ==========
Notes to the interim financial information
For the six months ended 30 June 2017
1. Basis of preparation
The unaudited interim financial information
set out above, which incorporates the financial
information of the Company and its subsidiary
undertakings (the "Group"), has been prepared
using the historical cost convention and in
accordance with International Financial Reporting
Standards ("IFRS"), including IFRS 6 'Exploration
for and Evaluation of Mineral Resources', as
adopted by the European Union ("EU") and with
those parts of the Companies Act 2006 applicable
to companies reporting under IFRS.
These interim results for the six months ended
30 June 2017 are unaudited and do not constitute
statutory accounts as defined in section 434
of the Companies Act 2006. The financial statements
for the six months ended 31 December 2016 have
been delivered to the Registrar of Companies
and the auditors' report on those financial
statements was unqualified and contained an
emphasis of matter pertaining to going concern.
Going concern basis of accounting
The Group made a loss after tax from all operations
for the six months ended 30 June 2017 of GBP1.0
million, had negative cash flows from operations
and is currently not generating significant
revenues. Cash and cash equivalents were GBP199,000
as at 30 June 2017. An operating loss is expected
in the 12 months subsequent to the date of these
results and accordingly the Company will probably
need to raise funding in addition to the GBP585,000
net of expenses raised in July 2017 to provide
additional working capital to finance its on-going
activities especially if it decides to exercise
its remaining option over certain platinum and
gold licences in Colombia. Management has successfully
raised money in the past, but there is no guarantee
that adequate funds will be available when needed
in the future.
There is a material uncertainty related to the
conditions above that may cast significant doubt
on the Group's ability to continue as a going
concern and therefore the Group may be unable
to realise its assets and discharge its liabilities
in the normal course of business.
Based on the Board's assessment that the Company
will be able to raise additional funds, if required,
to meet its working capital and capital expenditure
requirements, the Board have concluded that
they have a reasonable expectation that the
Group can continue in operational existence
for the foreseeable future. For these reasons
the Group continues to adopt the going concern
basis in preparing this unaudited interim financial
information.
2. Segment reporting
For the purposes of segmental information, the
operations of the Group are focused in three
geographical segments, namely: the UK, Argentina
and Colombia and comprise one class of business:
the exploration, evaluation and development
of mineral resources. The UK is used for the
administration of the Company.
The Group's operating loss arose from its operations
in the UK, Argentina and Colombia.
For the six months ended 30 June
2017
UK Argentina Colombia Total
GBP'000 GBP'000 GBP'000 GBP'000
Consolidated
loss before
tax (487) (33) (486) (1,006)
-------- ---------- --------- --------
Included in
the consolidated
loss before
tax are the
following income/(expense)
items:
Depreciation (1) (2) - (3)
Interest received - - - -
Foreign currency
loss (92) - (8) (100)
Total Assets 88 4,830 2,892 7,810
Total Liabilities (303) (12) (324) (639)
-------- ---------- --------- --------
For the six months ended 31 December
2016
UK Argentina Philippines Colombia Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Consolidated
loss before
tax (580) (21) (133) (446) (1,180)
-------- ---------- ------------ --------- --------
Included in
the consolidated
loss before
tax are the
following income/(expense)
items:
Depreciation (1) (2) - - (3)
Interest received - - - - -
Foreign currency
gain 12 - - 2 14
Total Assets 230 4,824 - 1,892 6,946
Total Liabilities (91) (7) - (30) (128)
-------- ---------- ------------ --------- --------
For the six months ended 30 June
2016
UK Argentina Philippines Colombia Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Consolidated
loss before
tax (8,618) (23) (59) (165) (8,865)
-------- ---------- ------------ --------- --------
Included in
the consolidated
loss before
tax are the
following income/(expense)
items:
Depreciation (1) (2) - - (3)
Interest received - - - - -
Foreign currency
gain 62 - - - 62
Total Assets 247 4,863 59 1,672 6,841
Total Liabilities (70) (3) - (19) (92)
-------- ---------- ------------ --------- --------
3. Impairment Unaudited Audited Unaudited
Six months Six months
ended Six months ended
30 ended 30
June 31 December June
2017 2016 2016
GBP'000 GBP'000 GBP'000
Impairment loss on loan to
associate - 155 3,310
Impairment loss on investment
in associate - - 4,968
----------------- ------------- -----------
- 155 8,278
================================================= ============= ===========
4. Loss per share
The basic and diluted loss per share have been
calculated using the loss attributable to equity
holders of the Company for the six months ended
30 June 2017 of GBP1,006,000 (six months ended
31 December 2016: GBP1,172,000; six months
ended 30 June 2016: GBP8,849,000). The basic
loss per share was calculated using a weighted
average number of shares in issue of 298,892,115
(six months ended 31 December 2016: 175,167,279;
six months ended 30 June 2016: 108,279,905).
The diluted loss per share has been calculated
using a weighted average number of shares in
issue and to be issued of 301,289,915 (six
months ended 31 December 2016: 177,565,079;
six months ended 30 June 2016: 110,677,705).
The diluted loss per share and the basic loss
per share are recorded as the same amount,
as conversion of share options decreases the
basic loss per share, thus being anti-dilutive.
5. Plant and equipment
Unaudited Audited Unaudited
30 31 30
June December June
2017 2016 2016
GBP'000 GBP'000 GBP'000
5.1 Cost
Balance at beginning of period 95 139 139
Acquisitions through business
combinations - Plant (note
8) 708 - -
Transfer - Mine development
from options (note 5) 1,439
Transfer - Mine development
- Option exercised (note
5) 227 - -
Additions - Equipment 2 3 -
Exchange differences (10) (47) -
---------- ---------- ----------
At end of period 2,461 95 139
---------- ---------- ----------
5.2 Depreciation
Balance at beginning of period 75 84 81
Charge for the period 3 3 3
Exchange differences (2) (12) -
---------- ---------- ----------
At end of period 76 75 84
---------- ---------- ----------
Net book value at end of
period 2,385 20 55
========== ========== ==========
6. Intangible assets
Unaudited Audited Unaudited
30 31 30
June December June
2017 2016 2016
GBP'000 GBP'000 GBP'000
6.1 Options to acquire exploration
licences
Balance at beginning of period 1,672 1,620 -
Acquisitions through business
combinations - Colombian
projects' rights over platinum
and gold licence areas - - 1,620
Additions - 91 -
Options acquired through
business combinations transferred
to Mine Development (note
4) (1,439) - -
Contribution to option costs (275)
Payment to exercise option 437
Transfer option exercised
to Mine Development (note
4) (227)
Exchange differences (14) (39) -
---------- ---------- ----------
Carried forward at end of
period 154 1,672 1,620
---------- ---------- ----------
6.2 Intellectual property rights
over proprietary geological
data
Balance at beginning of period 162 - -
Acquisitions through business
combinations - Rights over
geological information and
other data - 162 -
----------
Carried forward at end of
period 162 162 -
---------- ---------- ----------
Total intangibles 316 1,834 1,620
========== ========== ==========
The options to acquire exploration licences represent
an attractive opportunity to potentially generate
long-term shareholder value via the creation
of a low cost platinum and gold production operation
outside of South Africa. Whilst PGM prices are
currently depressed, significant pressure on
major platinum sources and depleting stock-piles
should enable Bezant to realise potentially significant
margins from the successful future development
of such licence areas. The Board of Directors
of Bezant has significant past experience of
successfully developing world-class PGM group
production sources with the Company's Non-Executive
Chairman, Edward Nealon, having founded Aquarius
Platinum Limited and Sylvania Resources Limited.
The option over the FKJ-083 and HCA-082 licence
areas was exercised during the six months ended
30 June 2017.
The intellectual property rights represent proprietary
geological information and other data utilised
in exploration activities.
The directors have assessed the value of these
intangible assets, and in their opinion, based
on a review of the remaining option over licence
acreage of interest, expected available funds
and the opportunity to potentially create a suitable
low cost platinum and gold production operation,
no impairment is necessary.
7. Exploration and evaluation assets
Unaudited Audited Unaudited
30 31 30
June December June
2017 2016 2016
GBP'000 GBP'000 GBP'000
Balance at beginning of period 4,790 4,790 4,788
Additions - - 2
Foreign exchange (1) - -
Carried forward
at end of period 4,789 4,790 4,790
========== ========== ==========
The amount of capitalised exploration and evaluation expenditure relates to 11 licences comprising the Eureka Project which are located in north-west Jujuy near to the Argentine border with Bolivia and are formally known as Mina Eureka, Mina Eureka II, 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. All licences remains valid and in good standing.
The directors have assessed the value of the intangible assets, and in their opinion, based on a review of the expiry dates of licences, expected available funds and the intention to continue exploration and evaluation, no impairment is necessary.
8. Share capital
Unaudited Audited Unaudited
30 31 30
June December June
2017 2016 2016
GBP'000 GBP'000 GBP'000
Number
Authorised
5,000,000,000 ordinary shares
of 0.2p each 10,000 10,000 10,000
============ ============= ============
Allotted, called up and fully
paid
As at beginning of the period 410 274 199
Share subscription 200 122 -
Acquisition of subsidiary 50 14 75
------------ ------------- ------------
As at end of period 660 410 274
============ ============= ============
Number Number Number
of shares of shares of shares
30 June 31 December 30 June
2017 2016 2016
Ordinary share capital is
summarised below:
As at beginning of the period 204,953,507 136,833,162 99,527,025
Share subscription 100,000,000 59,450,000 -
Shares issued to directors* - 1,468,600 -
Acquisition of subsidiary 25,000,000 7,201,745 37,306,137
------------ ------------- ------------
As at end of period 329,953,507 204,953,507 136,833,162
============ ============= ============
* In satisfaction of certain accrued directors'
fees and salaries which had been unpaid since
1 June 2016, Bezant issued 1,468,600 new ordinary
shares of 0.2 pence each in the Company on 27
September 2016. The conversion was made at the
volume weighted average price ("VWAP") of the
Company's shares over the period the fees were
outstanding. The VWAP over the period of approximately
2.5 pence per share represented a premium of approximately
5 per cent. to the closing mid-market share price
of 2.38 pence on 27 September 2016. In total,
unpaid fees of, in aggregate, GBP36,715 were converted
into new ordinary shares.
Unaudited Audited Unaudited
30 31 30
June December June
2017 2016 2016
GBP'000 GBP'000 GBP'000
The share premium was as
follows:
As at beginning of period 33,227 32,048 31,421
Share subscription 800 1,102 -
Share issue costs (106) (71) -
Acquisition of subsidiary 221 148 627
------------ ------------- ------------
As at end of period 34,142 33,227 32,048
============ ============= ============
Each fully paid ordinary share carries the right
to one vote at a meeting of the Company. Holders
of shares also have the right to receive dividends
and to participate in the proceeds from sale of
all surplus assets in proportion to the total
shares issued in the event of the Company winding
up.
9. Reconciliation of operating
loss to net cash outflow from
operating activities
Unaudited Audited Unaudited
Six Six Six
months months months
ended ended ended
30 June 31 December 30 June
2017 2016 2016
GBP'000 GBP'000 GBP'000
Operating loss (1,009) (1,027) (525)
Depreciation and amortisation 3 3 3
VAT refunds received (26) (24) (15)
Foreign exchange loss/(gain) 100 (14) (62)
Share option expense 8 - -
(Decrease)/increase in receivables (40) 45 77
Increase in payables 388 67 (3)
---------- ------------- ----------
Net cash outflow from operating
activities (576) (950) (525)
========== ============= ==========
10. Acquisition of subsidiaries
On 31 May 2017, the Company signed an agreement
to acquire a Panamanian special purpose vehicle,
Kellstown Investments Corp ("Kellstown") for
a cash consideration of US$200,000 and initial
equity consideration comprising the issue of
25 million new ordinary shares of 0.2 pence each
in the capital of the Company on Completion.
Deferred consideration comprising of a further
15 million Ordinary Shares will be payable when
the plant being acquired has for 10 consecutive
scheduled work days processed 900m(3) of material
per day. Kellstown via its wholly owned subsidiary
owns both a processing plant and mobile test
plant and certain other mining equipment which
will be utilised in mining operations on the
Company's FKJ-083 mining licence in Colombia.
The acquisition-date fair values of the assets
acquired and liabilities assumed and the consideration
transferred were as follows:
Acquisition
GBP'000
Plant and equipment (note 4) 708
Trade and other receivables 8
Trade and other payables (127)
Net assets and liabilities acquired 589
============
Consideration:
- Issue of Bezant ordinary shares (271)
- Deferred contingent consideration (163)
- Cash paid (155)
Total consideration transferred (589)
============
The plant and equipment was revalued to fair
value at the date of acquisition. The excess
amount paid for Kellstown and its subsidiary
undertakings over the aggregate fair value of
their separable net assets and liabilities has
been attributed to the plant.
11. Subsequent events
As announced on 5 July 2017, the Company raised,
in aggregate, approximately GBP585,000 (approximately
US$754,650) before expenses, through a placement,
via Beaufort Securities Limited and Peterhouse
Corporate Finance Limited as well as a subscription,
with certain existing and new institutional
and other investors, of, in aggregate, 68,823,529
new ordinary shares of 0.2 pence each in the
capital of the Company at a price of 0.85 pence
per share.
As announced on 7 August 2017, in order to conserve
its cash reserves, the Company issued, in aggregate,
12,359,642 new ordinary shares of 0.2 pence
each in the capital of the Company at an issue
price of 1.2976 pence per share in satisfaction
of certain accrued directors' fees and salaries
which had been unpaid from 1 October 2016 to
31 July 2017 as well as certain unpaid senior
management and consultancy fees and salaries
within the same period, which, in aggregate
totalled GBP160,378.
12. Availability of Interim Report
A copy of these interim results will be available
from the Company's registered office during
normal business hours on any weekday at Level
6, Quadrant House, 4 Thomas More Square, London
E1W 1YW and can also be downloaded from the
Company's website at www.bezantresources.com.
Bezant Resources Plc is registered in England
and Wales with company number 02918391.
INDEPENT REVIEW REPORT BY THE AUDITORS
TO BEZANT RESOURCES PLC
Introduction
We have been engaged by the Company to review the condensed financial information in the interim results for the six months ended 30 June 2017 which comprises the Group Statement of Comprehensive Income, the Group Statement of Changes in Equity, the Group Balance Sheet, the Group Cash Flow Statement and the related notes. We have read the other information contained in the interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' Responsibilities
The interim results are the responsibility of, and have been approved by, the directors. The directors are responsible for preparing the interim results in accordance with the AIM Rules for Companies.
As disclosed in note 1, the annual financial statements of the Group will be prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in the interim results has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim results based on our review.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Emphasis of matters Going concern
We have considered the adequacy of the going concern disclosures made in note 1 to the financial statements concerning the Group's ability to continue as a going concern. The Group incurred an operating loss of GBP1m during the period ended 30 June 2017 and is still incurring losses. As discussed in note 1, the Group has raised GBP585,000 before expenses post period end but will need to raise further funds in order to meet its budgeted operating costs. These conditions, along with other matters discussed in note 1 indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern. The interim results do not include the adjustments (such as impairment of assets) that would result if the Group were unable to continue as a going concern.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed financial statements in the interim results for the six months ended 30 June 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.
UHY Hacker Young LLP
Chartered Accountants
Registered Auditors
London
28 September 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DKLBLDKFFBBQ
(END) Dow Jones Newswires
September 29, 2017 03:20 ET (07:20 GMT)
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