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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Bezant Resources Plc | AQSE:BZT.GB | Aquis Stock Exchange | Ordinary Share | GB00B1CKQD97 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.023 | 0.02 | 0.026 | 0.023 | 0.023 | 0.023 | 0.00 | 06:51:45 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Jan 2023 to Jan 2025
TIDMBZT
RNS Number : 0527O
Bezant Resources PLC
29 September 2023
29 September 2023
Bezant Resources Plc
("Bezant" or the "Company")
Interim Results for the Six Months Ended 30 June 2023
Bezant (AIM: BZT), the copper-gold exploration and development company, announces its unaudited interim results for the six months ended 30 June 2023.
Chairman's Statement
Dear Shareholder,
The focus of the first half of 2023 continues to be Southern Africa.
Financial highlights:
GBP463K loss after tax (2022: GBP348K)
Approximately GBP365K cash at bank at the period end (31 December 2022: GBP57K).
Operational and corporate events in six months to 30 June 2023 :
In Namibia at our Hope & Gorob project we await the issue of a mining licence and in the meantime have been working on technical and other studies targeting a 8,000, tonnes contained copper p.a. open pit copper / gold mining operation in 2024, obtaining non-equity financing for the mining operation and the finalization of an updated mineral resource estimate.
In Botswana at our Kanye project we have focused on metallurgical work to test that manganese can be extracted from the deposit to produce leach solutions with high manganese concentrate via standard leaching processing technologies.
Eureka Project Argentina: We maintain our Eureka Project in good standing and during the period we had an updated Environmental Impact Assessment approved which provides for environmental monitoring and a drill program encompassing 9 drill holes of 200-300 metres each. The Company will engage an environmental consultant to conduct the environmental monitoring in 2H 2023 and we are seeking a joint venture partner for the exploration of the Eureka Project. In 2021 and into 2022 this was hampered by COVID restrictions in Argentina, but we have in the period received expressions of interest in the project and our focus remains to joint venture or monetise this unique red bed copper occurrence.
Investment in Mankayan Project in Philippines: On 27 March 2023 the Company announced the completion of its share swap sale of its investment in IDM Mankayan Pty Ltd for shares in IDM International Ltd. Our investment in IDM International Ltd (see note 7.1) is held at fair value of GBP2.2m. At the time of writing we hold a 24.2% investment in IDM International Limited. We are looking for this investment to be monetised either by direct trade sale or flotation on an individual or combined project basis. IDM International Limited and Crescent Mining Development Corporation the licence holder are actively progressing the project, whilst pursuing the various avenues to secure and advance what is a very large project in a copper hungry world.
Funding : On 15 June 2023, the Company announced, that it had agreed with Sanderson Capital Partners Limited ("Sanderson") a long-term shareholder in the Company to extend the repayment date for the GBP700,000 drawn down under the unsecured convertible loan funding facility entered into with Sanderson on 22 November 2021 until 23 December 2024 which is now convertible by Sanderson at the fixed price of 0.08 pence per share.
Issue of Equity: During the period we announced, on the dates indicated below, the following issues of new ordinary shares ("Shares") to raise funds and settle accrued fees to conserve the Company's working capital:
a) On 9 January 2023 the issue of 7,926,024 new Shares to settle GBP6,000 of consultancy fees;
b) On 12 April 2023 a fundraising of GBP750,000 from existing shareholders and investors for 1,875,000,000 Shares which included GBP40,000 from directors, the issue of 218,700,942 Shares to Directors and a PDMR at a premium to the share price and the fundraising price to settle GBP174,961 of accrued fees for the period March 2022 to March 2023 and the issue of 246,808,068 Shares to settle GBP101,250 of consultancy fees at the fundraising price to conserve the Company's working capital:
c) On 5 May 2023 the issue of 104,875,000 Shares to settle professional fees of GBP41,950; and
d) On 15 June 2023, the issue of 87,500,000 Shares to settle fees of GBP70,000 due in relation to the extension of the Sanderson unsecured convertible loan funding facility equivalent to 6.67% per year at a premium to the share price and the issue of 437,500,000 warrants over Shares exercisable at 0.12 pence per Share exercisable for two years.
Operational and corporate post period end events:
On 24 July 2023 and 6 September 2023 we announced the results of the metallurgical test work at the Kanye project which in essence verify that manganese can be extracted from the deposit to produce leach solutions with high manganese concentrate via standard leaching processing technologies with extremely high recoveries.
A revised mineral resource statement in relation to the Hope & Gorob project is being finalised by Addison Mining Services which will incorporate recent metallurgical test work and the Company expects to announce this in October 2023.
Outlook: During the period the copper price has continued to be volatile, but the consensus remains that there is an impending shortage of copper supplies. We believe we have an above average copper project portfolio, and we continue to have several discussions regarding finance and resource collaboration for their advancement. At the time of writing, we are still in discussions and negotiations regarding portfolio advancement.
I would like to thank my fellow directors and management for their untiring efforts to maintain and advance our projects to a point where our portfolio is well understood by the trade and therefore financeable going forward.
Colin Bird
Executive Chairman
29 September 2023
For further information, please contact:
Bezant Resources Plc Colin Bird Executive Chairman +44 (0)20 3416 3695 ------------------------------------------ ---------------------- Beaumont Cornish (Nominated Adviser) Roland Cornish / Asia Szusciak +44 (0) 20 7628 3396 ------------------------------------------ ---------------------- Novum Securities Limited (Joint Broker) Jon Belliss +44 (0) 20 7399 9400 ------------------------------------------ ---------------------- Shard Capital Partners LLP (Joint Broker) Damon Heath +44 (0) 20 7186 9952 ------------------------------------------ ----------------------
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 Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).
Group Statement of Profit and Loss
For the six months ended 30 June 2023
Hot Features
Premium
Notes Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2023 2022
GBP'000 GBP'000
CONTINUING OPERATIONS
Group revenue - -
Cost of sales - -
------------ ------------
Gross profit - -
Operating expenses (463) (319)
Share based payments 4 - (29)
------------ ------------
Group operating loss (463) (348)
Interest income - -
Loss before taxation (463) (348)
Taxation - -
------------ ------------
Loss for the period (463) (348)
============ ============
Loss per share (pence)
Basic and diluted from continuing operations 4 (0.01) (0.01)
======= =======
Group Statement of Other Comprehensive Income
For the six months ended 30 June 2023
Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2023 2022
GBP'000 GBP'000
Other comprehensive income :
Loss for the period (463) (348)
Items that may be reclassified to profit
or loss:
Foreign currency reserve movement (179) 9
------------ ------------
Total comprehensive loss for the period (642) (339)
============ ============
Group S tatement of Changes in Equity
For the six months ended 30 June 2023
Share Share Other Retained Non-Controlling Total
Capital Premium Reserves(1) Losses interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Unaudited - six months
ended 30 June 2023
Balance at 1 January
2023 2,079 39,507 3,672 (35,551) - 9,707
Current period loss - - - (463) - (463)
Foreign currency reserve - - (179) - - (179)
Total comprehensive
loss for the period - - (179) (463) - (642)
--------- --------- ------------- --------- ---------------- ---------
Proceeds from shares
issued 37 713 - - - 750
Share issue costs - (81) 21 - - (60)
Shares issued - in
lieu of fees 14 422 - - - 436
Equity component of
borrowings - - 272 - - 272
--------- --------- ------------- --------- ---------------- ---------
Balance at 30 June
2023 2,130 40,561 3,786 (36,014) - 10,463
========= ========= ============= ========= ================ =========
Share Share Other Retained Non-Controlling Total
Capital Premium Reserves(1) Losses interest Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Unaudited - six months
ended 30 June 2022
Balance at 1 January
2022 2,076 39,303 3,781 (36,952) (12) 8,196
Current period loss - - - (348) - (348)
Foreign currency reserve - - 9 - - 9
Total comprehensive
loss for the period - - - (348) - (339)
--------- --------- ------------- --------- ---------------- ---------
Proceeds from shares -
issued - - - - -
Shares issued - in
lieu of fees 2 147 - - - 149
Warrants exercised - 18 - 44 - 62
Share options granted - - - - -
--------- --------- ------------- --------- ---------------- ---------
Balance at 30 June
2022 2,078 39,468 3,790 (37,256) (12) 8,068
========= ========= ============= ========= ================ =========
(1) Other reserves is made up of the share-based payment and foreign exchange reserve.
Group Balance Sheet
As at 30 June 2023
Unaudited Audited
30 31
June December
2023 2022
Notes GBP'000 GBP'000
ASSETS
Non-current assets
Plant and equipment 6 2 2
Investments 7 2,260 2,260
Exploration and evaluation assets 8 8,435 8,398
---------- ----------
Total non-current assets 10,697 10,660
---------- ----------
Current assets
Trade and other receivables 56 76
Cash and cash equivalents 365 57
---------- ----------
Total current assets 421 133
----------
TOTAL ASSETS 11,118 10,793
----------
LIABILITIES
Current liabilities
Trade and other payables 220 463
Borrowings 9 435 623
---------- ----------
Total current liabilities 655 1,086
---------- ----------
NET ASSETS 10,463 9,707
========== ==========
EQUITY
Share capital 10 2,130 2,079
Share premium 10 40,561 39,507
Share-based payment reserve 1,201 1,181
Foreign exchange reserve 328 506
Merger reserve 1,831 1,831
Other reserves 426 154
Retained losses (36,014) (35,551)
---------- ----------
TOTAL EQUITY 10,463 9,707
========== ==========
Group Statement of Cash Flows
For the six months ended 30 June 2023
Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2023 2022
Notes GBP'000 GBP'000
Net cash outflow from operating activities 11 (246) (238)
----------- -----------
Cash flows from/(used) in investing activities
Deferred exploration expenditure (149) (474)
(149) (474)
----------- -----------
Cash flows from financing activities
Proceeds from issuance of ordinary shares 703 19
Borrowings - 250
----------- -----------
703 269
----------- -----------
Increase/(decrease) in cash 308 (443)
Cash and cash equivalents at beginning
of period 57 728
Foreign exchange movement - 4
----------- -----------
Cash and cash equivalents at end of period 365 289
=========== ===========
Notes to the interim financial information
For the six months ended 30 June 2023
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 2023
are unaudited and do not constitute statutory accounts as
defined in section 434 of the Companies Act 2006. The financial
statements for the year ended 31 December 2022 have been delivered
to the Registrar of Companies and the auditors' report on
those financial statements was unqualified and contained a
material uncertainty pertaining to going concern.
Going concern basis of accounting
The Group made a loss from all operations for the six months
ended 30 June 2023 after tax of GBP0.5 million (2022: GBP0.4
million), had negative cash flows from operations and is currently
not generating revenues. Cash and cash equivalents were GBP365,000
as at 30 June 2023.
On 12 April 2023 the Company announced a GBP750,000 fundraising
from directors, existing shareholders and investors to advance
the Hope Copper-Gold Project in Namibia whilst the Company
awaits the award of a mining licence ahead of facilitating
copper gold mining operations, for the metallurgical test
work on the Kanye manganese project in Botswana and for the
Company's other projects as well as working capital. The Company
also issued shares to Directors and PDMR at a premium to the
share price to settle GBP174,961 of accrued fees ("Conversion
Shares") and the settling of GBP101,250 of consultancy fees
by the issue of shares to consultants ("Consultant Shares")
to conserve the Company's working capital.
On 15 June 2023, the Company announced, that it had agreed
with Sanderson Capital Partners Limited ("Sanderson") a long-term
shareholder in the Company to extend the repayment date for
the GBP700,000 drawn down under the unsecured convertible
loan funding facility entered into with Sanderson on 22 November
2021 until 23 December 2024 which is now convertible by Sanderson
at the fixed price of 0.08 pence per share.
An operating loss is expected in the year subsequent to the
date of these accounts and as a result the Company will need
to raise funding to provide additional working capital to
finance its ongoing activities. Management has successfully
raised money in the past, but there is no guarantee that adequate
funds will be available when needed in the future.
Based on the Board's assessment that the Company will be able
to raise additional funds, as and when 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 the annual report
and financial statements.
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 realize its assets and discharge its liabilities
in the normal course of business.
The financial report does not include any adjustments relating
to the recoverability and classification of recorded asset
amounts or liabilities that might be necessary should the
entity not continue as a going concern.
2 Significant accounting judgments, estimates and assumptions
The carrying amounts of certain assets and liabilities are
often determined based on estimates and assumptions of future
events. The key estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts
of certain assets and liabilities within the next annual reporting
year are:
Share-based payment transactions:
The Group measures the cost of equity-settled transactions
with directors, consultants and employees by reference to
the fair value of the equity instruments at the date at which
they are granted. The fair value is determined by using a
Black and Scholes model which takes into account expected
share volatility, strike price, term of the option and the
dividend policy.
Impairment of investments, options and deferred exploration
expenditure:
The Group determines whether investments (including those
acquired during the period), options and deferred exploration
expenditure are impaired when indicators, based on facts and
circumstances, suggest that the carrying amount may exceed
its recoverable amount. Such indicators include the point
at which a determination is made as to whether or not commercial
mining reserves exist in the subsidiary or associate in which
the investment is held or whether exploration expenditure
capitalised is recoverable by way of future exploitation or
sale, obviously pending completion of the exploration activities
associated with any specific project in each segment.
Fair value of assets and liabilities acquired on acquisition
of subsidiaries
The Group determines the fair value of assets and liabilities
acquired on acquisition of subsidiaries by reference to the
carrying value at the date of acquisition and by reference
to exploration activities undertaken and/or information that
the Directors become aware of post acquisition (note 8).
Investments at fair value through profit and loss ('Equity
investments')
Equity investments are initially measured at cost, including
transaction costs. At each reporting date, the fair value
is assessed and any resultant gains and losses are included
directly in the Consolidated Statement of Profit and Loss
under IFRS 9.
Valuation of Equity Instruments Convertible Loan (Borrowings)
Convertible instruments can be complex, containing a number
of features which can have a significant impact on the accounting
under IFRS 9 Financial Instruments and IAS 32 Presentation
of Financial Instruments. The Company determined that the
GBP700,000 convertible note whose terms was modified during
the period (note 9) was substantially different as the discounted
present value of the cash flows under the new terms including
any fees paid net of any fees received discounted using the
original effective interest rate was more than 10% different
from the discounted present value of the remaining cash flows
of the original financial liability. Therefore, the original
GBP700,000 convertible note ("Original 2022 Convertible Loan")
was treated as being repaid on 14 June 2023 and a new GBP700,000
convertible note loan taken out on 14 June 2023 under the
new the modified terms ("Modified 2023 Convertible Loan").
The Company determined that the Modified 2023 Convertible
Loan was an equity instrument as the conversion feature results
in the conversion of a fixed amount of stated principal into
a fixed number of shares, it satisfies the 'fixed for fixed'
criterion and, therefore, it is classified as an equity instrument
which requires the valuation of the liability component and
the equity conversion component. The fair value of the liability
component, included in current borrowings, at inception was
calculated using a market interest rate for an equivalent
instrument without conversion option. The discount rate applied
was 25%.
Segment reporting
3. For the purposes of segmental information, the operations of
the Group are focused in geographical segments, namely the UK,
Argentina, Namibia, and Botswana, and comprise one class of business:
the exploration, evaluation and development of mineral resources.
The UK is used for the administration of the Group and includes
equity investments in non-group companies.
The Group's loss before tax arose from its operations in the
UK, Argentina Namibia and Botswana.
For the six months
ended 30 June 2023
- unaudited
UK Argentina Namibia Botswana Total
GBP'000 GBP'000 GBP'000
Consolidated loss
before tax (418) (45) - - (463)
-------- ---------- -------- --------- --------
Included in the consolidated
loss before tax are
the following income/(expense)
items:
Foreign currency gain - - - - -
Total Assets 2,663 4,867 2,536 1,052 11,118
Total Liabilities (601) (54) - - (655)
-------- ---------- -------- --------- --------
For the six months
ended 30 June 2022
- unaudited
UK Argentina Namibia Botswana Total
GBP'000 GBP'000 GBP'000
Consolidated loss
before tax (288) (59) (1) - (348)
-------- ---------- -------- --------- --------
Included in the consolidated
loss before tax are
the following income/(expense)
items:
Foreign currency gain - - - -
Total Assets 361 5,338 2,418 885 9,002
Total Liabilities (892) (42) - - (934)
-------- ---------- -------- --------- --------
4. Share based payments
6 months 6 months
ended 30 ended 30
June 2023 June 2022
GBP'000 GBP'000
Share option expense - Directors - 18
Share option expense - Management - 11
- 29
===================================================== ===========
5. 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 2023 of GBP463,000 (2022:
GBP348,000). The basic loss per share was calculated using
a weighted average number of shares in issue of 6,139,789,530
(2022: 5,025,497,800).
The weighted average number of shares in issue and to be
issued if calculating the diluted loss per share would amount
to 7,200,975,826 (2022: 6,355,967,563).
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.
6. Plant and equipment
Unaudited Audited
30 June 31
2023 December
2022
GBP'000 GBP'000
6.1 Cost
Balance at beginning of period 67 67
Exchange differences - -
---------- ----------
At end of period 67 67
---------- ----------
6.2 Depreciation
Balance at beginning of period 65 65
Charge for the period - -
At end of period 65 65
---------- ----------
Net book value at end of period 2 2
========== ==========
7. Investments
Unaudited Audited
30 31
June December
2023 2022
GBP'000 GBP'000
Investments under fair value through
profit and loss (note 7.1) 2,182 2,182
Debt instruments under fair value through
profit and loss (note 7.2) 78 78
2,260 2,260
========== ==========
7.1 Investments
On 13 September 2021 the Company, entered into a conditional
agreement with IDM Mankayan Pty Ltd ("IDM Mankayan"), a company
incorporated in Australia, to take the Mankayan Project in
the Philippines forward (the "IDM Mankayan Agreement"). The
IDM Mankayan Agreement completed on 20 October 2021 and the
Company paid A$90,000 (GBP49K)_to IDM Mankayan and owns 44
IDM Mankayan shares (the "IDM Mankayan Investment") of the
160 shares issued by IDM Mankayan but has no management control
over or right to appoint directors of IDM Mankayan which is
why the IDM Mankayan Investment is held as an equity investment
under IFRS 9. The Mankayan project's MPSA was originally issued
for a standard 25 year period, which expired on 11 November
2021, and as announced by the Company on 18 March 2022 has
been renewed for a second 25 year term with effect from 12
November 2021.
On 26 October 2022 the Company entered into a conditional share
purchase agreement with IDM International Ltd ("IDM International")
the parent company of IDM Mankayan to sell the IDM Mankayan
Investment for 19,381,054 fully paid ordinary shares of IDM
International (the "IDM International SPA"). The IDM International
SPA was conditional on approval of the IDM International SPA
by the shareholders of IDM International and completed during
the period on 27 March 2023.
7.2 On 26 October 2022 the Company entered into a convertible loan
note agreement with IDM International to invest A$137,500 (GBP
78K) in IDM International to acquire 137,500 notes (the "IDM
International Convertible Loan Note Investment"). The Company
has the right to convert the whole but not part of the face
value of each Note into IDM International Shares at A$0.20
at any time (and as many times) prior to the Maturity Date
which is 11 November 2026. As at 30 June 2023, the fair value
of the debt instrument was GBP78k and no unrealised gain/loss
was recognised.
Unaudited Audited
30 June 2023 31 December
2022
GBP'000 GBP'000
Investments under fair value
through profit and loss
Unquoted investments 1 January
2023 2,182 49
Increase in fair value during
year(1) - 2,133
------------- ------------
Unquoted investments at 30
June 2023 2,182 2,182
============= ============
(1) 19,381,054 shares valued at AUD$0.20 (GBP0.112) being
the share subscription price at which at which third parties
subscribed for shares in IDM International on 4 April 2023.
Investments are initially valued at cost. At each reporting
date these investments are measured at fair value with any
gains or losses recognised through the Consolidated Statement
of Profit and Loss. In 2023, the Group and Company had unrealised
gains of GBP2,133,000.
This along with other valuations are estimates based on the
Directors' assessment of the performance of the underlying
investment and reliable information such as recent fundraising.
There is however inherent uncertainty when valuing private
companies such as these in the natural resources sector.
8. Exploration and evaluation assets
Unaudited Audited
30 31
June December
2023 2022
GBP'000 GBP'000
Balance at beginning of period 8,398 7,692
Acquisitions during period
Exploration expenditure 37 934
Write back of liability in relation to joint
venture expenditure (note 8.1) - (228)
Carried forward at end of period 8,435 8,398
========== ==========
8.1 Exploration Assets
Argentina
The amount of capitalised exploration and evaluation expenditure
relates to 12 licences comprising the Eureka Project and 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, Mina Paul II, Mina
Sur Eureka and Mina Cabereria Sur, covering, in aggregate,
an area in excess of approximately 5,500 hectares and accessible
via a series of gravel roads. All licences remain valid.
A new Environmental Impact Assessment (EIA) was presented in
2021 and approved in February 2023 in respect of Mina Eureka,
Mina Gino I, Mina Gino II, Mina Mason I, Mina Mason II, Mina
Julio I, Mina Julio II, Mina Paul I, Mina Paul II, being the
9 northern most licences which are the intended focus of a
future exploration programme. The new EIA approval covers environmental
monitoring and a drill program encompassing 9 drill holes of
200-300 metres each. The Company will engage an environmental
consultant to conduct the environmental monitoring in 2H 2023
and is seeking a joint venture partner to work with in relation
to an exploration drilling programme.
Notwithstanding the absence of new exploration activities on-site
during the period the directors, given their intention post
COVID-19 in Argentina to focus on finding a joint venture partner
for the project have assessed the value of the intangible asset
having considered any indicators of impairment, and in their
opinion, based on a review of the expiry dates of licences,
future expected availability of funds to develop the Eureka
Project and the intention to continue exploration and evaluation,
no impairment is necessary. The capitalised cost at 30 June
2023 was GBP4,847,000.
8.2 Namibia
On 14 August 2020 the Company completed the acquisition of
100% of Virgo Resources Ltd and its interests in the Hope Copper-Gold
Project in Namibia which comprise i) 70% of Hope and Gorob
Mining Pty Ltd incorporated in Namibia which owns EPL5796,
and ii) 80% of Hope Namibia Mineral Exploration Pty Ltd Incorporated
in Namibia which owns EPL6605 and iEPL7170. The balance of
the project is held by local Namibian partners.
JORC Resource: The Hope project area on EPL5796 contains a
combined gross mineral resource within three closely-spaced
deposits (namely Hope, Gorob-Vendome and Anomaly) of 10.18Mt
at 1.89% Cu and 0.3 g/t Au at 0.7% Cu cut-off reported in accordance
with the JORC code (2012), with 192kt of contained Cu and 3,190kg
of contained Au. Approximately 30% of the Mineral Resource
tonnage is classified in the Indicated Mineral Resource category
with the balance in the Inferred Mineral Resource category
and was based on 339 drill holes for a total of 63,855 metres.
The Hope deposit itself has an Indicated Mineral Resource of
3.09Mt @ 2.53% Cu and 0.84g/t Au at a 0.7% Cu cut-off. Historic
drill intersections include 23.31m @ 1.59% Cu & 0.23g/t Au
from 464.09m, including 9.68m @ 3.18% Cu & 0.42g/t Au from
477.17m (hole HDD82) and 10.12m @ 5.72% Cu & 0.56g/t Au from
525.57m (hole HDD91).
During 2022 on 7 February 2022, 15 March 2022, 14 June 2022
and 9 August 2022 the Company announced positive results in
relation to exploration activities undertaken post acquisition
which support the Company's confidence in the Hope Copper-Gold
Project. The 9 August 2022 announcement highlighted that; the
Company has submitted a mining licence application for the
Hope-Gorob copper-gold project area on EPL5796 to the Namibian
authorities; the Mining Licence application is based on an
updated Scoping Study completed in May 2022 by external consultants
incorporating historic mineral resource estimates which did
not yet include additional near-surface copper-gold resources
generated by the Company's shallow drill programme completed
in early 2022; the Scoping Study indicated that the potential
for the development of a surface and underground copper mine
exists at the Hope and Gorob deposits and recommended completion
of the additional work required for optimisation of mine development
plans including the work necessary to obtain granting of environmental
permits and also recommended that further exploration work
continues to fully define resource potential at these deposits;
the shallow drilling completed in 2022 has continued to extend
the strike and up-dip extension of mineralisation at both the
Hope and Vendome prospects. The 2022 drillholes have added
more than 1.5km to the mineralised strike length, with the
potential to add significantly to the previously estimated
mineral resource; and continuous copper and gold mineralisation
has been intersected in drill intercepts over substantial downhole
widths of up to 29.74m.
Reported downhole assay peak intercepts from the shallow drill
programme on EPL5796 include:
o 4.6% Cu, 2.80g/t Au over 3.81m from 39.32m depth in hole
VED001
o 2.4% Cu, 0.36g/t Au over 14.28m from 25.2m depth in hole
HPD003
o 1.90% Cu, 0.36g/t Au over 9.30m from 33.80m depth in hole
HPD005
o 1.49% Cu, 0.23g/t Au over 16.97m from 15.50m depth in hole
HPD004
It was also noted that gold values typically return grades
of approximately 0.3g/t Au providing a significant potential
by-product value addition; and the drill programme was successful
in confirming the presence of shallow mineralisation at three
prospects to date. Results are sufficiently encouraging to
warrant further drilling along strike to evaluate an estimated
additional linear 10km or more of projected mineralisation
never previously tested.
A renewal application has been made for EPL6605 to be renewed
to 25 September 2024 which the Company anticipates will be
granted once the Ministry of Mines and Energy review has been
completed.
Post acquisition there have been no indications that any impairment
provisions are required in relation to the carrying value of
the Hope Copper-Gold Project. The capitalised cost at 30 June
2023 was GBP2,536,000.
8.3 Botswana
On 12 February 2021 the Company further to its announcement
on 22 December 2020 announced the completion of the acquisition
of 100% of Metrock Resources Ltd ("Metrock") and its manganese
mineral exploration licences in Southern Botswana comprising
the Kanye Manganese Project (the "Kanye Manganese Project").
The Kanye Manganese Project i) comprises a 1,668 sq. km land
package with 125 km of potential on trend manganese mineralisation
across the licences ii) has historical trenching results have
yielded in the case on one prospect of between 53% and 74%
manganese oxide ("MnO"), and iii) project area is near the
ground of a TSX listed public company that has a preliminary
economic assessment showing high rates of return based on a
MnO grade of 27.3.
The Kanye Manganese Project comprises collection of five prospecting
licenses, namely PLs 129/2019 , 421/2018, 423/2018, 424/2018,
and PL 425/2018 (the "Project Licences"), located in south-central
Botswana south of the town of Jwaneng and west of the town
of Kanye and 150 km by road from the capital Gaborone. The
licenses cover a total area of 1,668 sq. km and provide the
holder with the right to prospect for Metals. Four licenses
are held by Cypress Sources Pty Ltd, a 100% owned subsidiary
of Coastal Resources Pty Ltd which in turn is 100% owned by
Metrock Resources Limited. The fifth licence PL 129/2019 is
held by Coastal Minerals Pty Ltd which is 100% owned by Coastal
Resources Pty Ltd.
Reconnaissance mapping, prospecting and sampling work on the
Kanye property since acquisition in February 2021 (through
October 2022) has been focussed on PL 129/2019 has highlighted
the following; in relation to PL 129/2019 up to four historic
manganese occurrences were successfully located and sampled
in the field within an 8km-belt; 40 grab samples were obtained
which assayed from traces up to high-grade results of 67.18%
MnO occurring at the Moshaneng borrow pit and 68.01% MnO at
the Mheelo prospect; geological mapping indicates that the
target horizon hosting high-grade manganese may extend continuously
for at least 4km between the Loltware and Moshaneng prospects
on the Bezant ground; laboratory assays from trench sampling
by Bezant at the Loltware manganese prospect (announced on
22 March 2022) returned in-situ chip/grab sample peak results
of 41.4% MnO, 49.23% MnO and 40.83% MnO from one metre wide
zones of siliceous manganese mineralisation within a continuously
mineralised zone of 40m @ 11.53% MnO; At the Moshaneng Borrow
Pit, excavation of shallow clays by a local contractor for
road fill has exposed further manganese-rich pods over a width
of approximately 12-15m and a strike length of about 300m within
a continuous 2km long soil anomaly.
Maiden drill testing for both the Moshaneng and Loltware targets
commenced in October 2022 and comprised 11 mainly shallow,
angled RC holes totaling 682m at Moshaneng prospect as well
as one short diamond drill hole at Loltware prospect the results
of which were announced on 9 February2023 and highlighted;
Moshaneng drilling intersected a zone of flat-lying detrital,
supergene manganese-iron mineralisation which appears to infill
an irregular karst surface over a minimum strike length of
400m; p otential for at least another 100m of strike extension
to the southeast of holes MS-RC-07 and MS-RC-012 would extend
the total strike length to a minimum of 500m ; l ess than 25%
of the more than 2km potential extent of the target defined
by soil geochemistry has been drill tested ; g rades compare
favourably with reported grades on neighbouring more advanced
manganese projects and therefore the Kanye project warrants
detailed evaluation and drilling with a view to establishing
the mineral resource potential; drilling at Loltware encountered
encouraging manganese enhancement in core, warranting further
investigation.
The Moshaneng drill results included the following assay intervals:
* 6m @ 28.64% MnO from 6m depth in hole MS-RC-12
* Including 4m @ 35.38% MnO from 8m depth
* 3m @ 21.85% MnO from 4m depth in hole MS-RC-06
3m @ 21.20% MnO from 2m depth in hole MS-RC-07
Post the period end on 24 July 2023 and 6 September 2023 the
Company announced the results of metallurgical test work at
the Kanye project which in essence verify that manganese can
be extracted from the deposit to produce leach solutions with
high manganese concentrate via standard leaching processing
technologies with extremely high recoveries.
Post-acquisition there have been no indications that any impairment
provisions are required in relation to the carrying value of
the Kanye Manganese Project.
The capitalised cost at 30 June 2023 was GBP1,052,000.
9. Borrowings
Borrowings Original 2022 Convertible Loan - Note (i)
Consolidated
Unaudited Audited
30 June 2023 31 December
2022
GBP'000 GBP'000
Balance at beginning of year 623 -
Convertible loan receipts - 700
Equity allocation - (154)
Finance charge accrued 77 77
Refinanced by Modified 2023 Convertible
Loan (700)
- 623
===================== ===================
Borrowings Modified 2023 Convertible Loan - Note (ii)
Consolidated
Unaudited Audited
30 June 2023 31 December
2022
GBP'000 GBP'000
Balance at beginning of year - -
Original 2022 Convertible loan refinanced 700 -
Equity allocation (272) -
Finance charge accrued 7 -
435 -
======================= ===================
Note (i) As announced on 30 June 2022 the Company further to its announcement of 23 November 2021 confirmed that it had issued two drawdown notices of GBP350,000 each (" Tranche 1 " and " Tranche 2 ") for a total amount of GBP700,000 (the " Original 2022 Convertible Loan ") under its GBP1,000,000 interest free unsecured convertible loan funding facility with Sanderson Capital Partners Ltd (the " Lender"), a long-term shareholder in the Company (the " Facility "). The amount drawdown was interest free and repayable in 12 months or can be converted at any time at the Lender's option into Bezant shares at fixed prices for Tranche 1 of GBP350,000, at 0.19 pence per share and for Tranche 2 of GBP350,000 at 0.225 pence per share. As the conversion feature results in the conversion of a fixed amount of stated principal into a fixed number of shares, it satisfies the 'fixed for fixed' criterion and, therefore, it is classified as an equity instrument. The value of the liability component of GBP546,000 and the equity conversion component of GBP154,000 were determined at the date of the drawdowns. The fair value of the liability component, included in current borrowings, at inception was calculated using a market interest rate for an equivalent instrument without conversion option. The discount rate applied was 25%.
Under the terms of the Facility the Lender is due;
a) a drawdown fee of GBP14,000 being 2% of the amount drawdown which was settled by the issue of 12,522,361 new ordinary shares of GBP0.00002 each ("Shares") credited as fully paid at 0.1118 pence per share being the five-day VWAP on 28 June 2022 (the "Drawdown Fee Shares"); and
b) GBP350,000 of three year warrants over Shares (the "Warrants"). The exercise price for the Warrants are as follows:
-- GBP175,000 at 0.25 pence per share for the drawdown of Tranche 1; and -- GBP175,000 at 0.30 pence per share for the drawdown of Tranche 2.
Note (ii) On 15 June 2023 the Company announced that it had agreed with the Lender to extend the repayment date for the GBP700,000 under the Original 2022 Convertible Loan so the GBP700,000 drawdown is now repayable by 23 December 2024 and convertible by the Lender at the fixed price of 0.08 pence per share (the "New Conversion Price") and to the loan extension fees detailed below (the "Modified 2023 Convertible Loan"). No further amounts can be drawn down under the Facility.
As the conversion feature of the Modified 2023 Convertible Loan results in the conversion of a fixed amount of stated principal into a fixed number of shares, it satisfies the 'fixed for fixed' criterion and, therefore, it is classified as an equity instrument. The value of the liability component of GBP427,674 and the equity conversion component of GBP272,326 were determined at the date of the Modified Terms. The fair value of the liability component, included in current borrowings, at the date of the Modified 2023 Convertible Loan was calculated using a market interest rate for an equivalent instrument without conversion option. The discount rate applied was 25%.
Under IFRS 9, the terms of a modified financial liability at amortised cost are substantially different if the discounted present value of the cash flows under the new terms including any fees paid net of any fees received discounted using the original effective interest rate is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability. Therefore the Original 2022 Convertible Loan is treated as repaid on 14 June 2023 and the Modified 2023 Convertible Loan as a new loan taken out on 14 June 2023.
The Company as a loan extension fee in relation to the Modified 2023 Convertible Loan i) paid the Lender a GBP 70,000 facility extension and documentation fee equivalent to 6.67% per year which was settled by the issue of 87,500,000 new ordinary shares of 0.002p each ("Shares") at the New Conversion Price ("Facility Extension Fee Shares"); and ii) issued the Lender 437,500,000 warrants over Shares exercisable at 0.12 pence per Share (the "Warrant Exercise Price") exercisable for two years from 14 June 2023 (the "Facility Extension Fees"). The Company has an option to convert all or part of the GBP700,000 drawdown if the Company's share price exceeds 0.14 pence for 10 or more business days.
The New Conversion Price was at a 113% premium to the closing price of 0.0375 pence per share on 14 June 2023 and a 100% premium to the placing price in relation to the Company's GBP750,000 fundraising announced on 12 April 2023. The Warrant Exercise Price is at a 220% premium to the closing price on 14 June 2023.
10. Share capital
Unaudited Audited
30 31
June December
2023 2022
GBP'000 GBP'000
Number
Authorised
6,000,000,000 ordinary shares of 0.002p
each (1) 120 100
5,000,000,000 deferred shares of 0.198p
each (2) 9,900 9,900
---------- ----------
10,000 10,000
========== ==========
Allotted ordinary shares, called up and
fully paid
As at beginning of the year 101 98
Share subscription 37 -
Shares issued in lieu of directors and management
fees 4 1
Shares issued on exercise of warrants - 1
Shares issued to settle third party fees 10 1
Total ordinary shares at end of year 152 101
------ ------
Allotted deferred shares, called up and
fully paid (2)
As at beginning of the period 1,978 1,978
Total deferred shares at end of period 1,978 1,978
Ordinary and deferred as at end of period 2,130 2,079
====== ======
Number of
Number of shares 31
shares 30 December
June 2023 2022
Ordinary share capital is summarised below:
As at beginning of the period 5,081,399,113 4,913,028,538
Share subscription 1,875,000,000 -
Shares issued in lieu of directors and management
fees 218,700,942 100,000,000
Shares issued on exercise of warrants - 41,562,500
Shares issued to settle third party fees 462,872,981 26,808,075
As at end of period 7,637,973,036 5,081,399,113
=============== ==============
Deferred share capital is summarised below:
As at beginning of the year (1) 998,773,038 998,773,038
As at end of period 998,773,038 998,773,038
=============== ==============
(1) This is the number of ordinary shares which the directors
were authorised to issue at the AGM on 23 August 2022. This authority
was increased to 7,500,000,000 shares at the AGM on 28 July 2023.
(2) The Deferred Shares have very limited rights and are effectively
valueless as they have no voting rights and have no rights as
to dividends and only very limited rights on a return of capital.
The Deferred Shares are not admitted to trading or listed on
any stock exchange and are not freely transferable.
Unaudited Audited
30 31
June December
2023 2022
GBP'000 GBP'000
The share premium was as follows:
As at beginning of year 39,507 39,303
Share subscription 713 -
Shares issued to settle third party fees 251 34
Shares issued in lieu of directors and management
fees 171 128
Share issue costs (81) -
Warrants exercised - 42
As at end of year 40,561 39,507
========== ==========
Each fully paid ordinary share carries the right to one vote
at a meeting of the Company. Holders of ordinary 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.
11. Reconciliation of operating loss to net
cash outflow from operating activities
Unaudited Unaudited
Six Six
months months
ended 30 ended
June 30 June
2023 2022
GBP'000 GBP'000
Operating loss from all operations (463) (348)
Share option expense - 29
Shares issued - Directors fees 43
Share issued - Consultants 19
Shares issued - Legal/finance fees 70 -
(Increase)/decrease in receivables 20 (52)
Increase/(decrease) in payables 65 133
---------- ----------
Net cash outflow from operating activities (246) (238)
========== ==========
12. Subsequent events
No significant events have occurred subsequent to the reporting
date that would have a material impact on the consolidated financial
statements.
13. 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 Floor 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.
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END
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