Bezant Resources PLC Equity fundraising of approximately £700,000 gross (7462S)

TIDMBZT

RNS Number : 7462S

Bezant Resources PLC

05 October 2017

5 October 2017

Bezant Resources Plc

("Bezant" or the "Company")

Equity fundraising of approximately GBP700,000 gross

Bezant (AIM: BZT), the AIM quoted gold and platinum development company, announces that it has raised, in aggregate, GBP700,000 (approximately US$920,000) before expenses, through a conditional placement, via Beaufort Securities Limited ("Beaufort Securities"), of 63,636,360 new ordinary shares of 0.2 pence each in the capital of the Company (the "Placing Shares") (the "Placing") at a price of 1.1 pence per new ordinary share (the "Placing Price").

Highlights:

   --     Issue of 63,636,360 Placing Shares at the Placing Price of 1.1 pence per new ordinary share. 

-- Placing provides additional working capital to be applied towards the commencement of production from the higher-grade gravels at the Company's wholly owned Choco Project in Colombia (the "Choco Project") following commissioning of the first plant, as announced on 26 June 2017, and recent completion of the open pit and its infrastructure further to the Company's announcement on 19 September 2017.

Edward Nealon, Chairman of Bezant, commented:

"Today's fundraising will further support the Company as we now start production from the deeper level gravels containing higher grades of platinum and gold. We have been directing all available funds into the Choco Project operation, and therefore we decided to conduct the Placing to provide the group with additional working capital including for mine and project development as well as the second option exercise payment due in respect of the Choco Project licences covering more than 2,500ha in aggregate.

"I look forward to announcing the initial results of production from the deeper level gravel within the coming weeks."

Further Details:

The Placing Price represents a discount of approximately 21 per cent. to the closing mid-market price of 1.40 pence per ordinary share on 4 October 2017 (being the latest practicable business day prior to the date of this announcement).

The Placing is conditional on admission of the Placing Shares to trading on AIM ("Admission"). Following Admission, the Placing Shares will represent, in aggregate, approximately 13.4 per cent. of the Company's enlarged issued ordinary share capital.

Beaufort Securities will receive commission from the Company and a warrant over 6,363,636 ordinary shares exercisable at a price of 1.1 pence per share expiring five years from, and conditional on, Admission.

Use of Funds

The net proceeds raised from the Placing will primarily be applied to:

-- Achieving production ramp-up from the higher-grade gravels at the Choco Project and associated project costs

-- Making the second and final payment due in relation to the exercise of its option over FKJ-083 and HCA-082 as announced in April 2017

   --     General working capital for the Group 

Application to trading on AIM

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on 12 October 2017.

Following the issue of the abovementioned Placing Shares, the Company's total issued share capital will consist of 474,773,038 ordinary shares with voting rights. The Company does not hold any ordinary shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The Placing Shares will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares.

On Admission, the above figure of 474,773,038 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Bezant under the Financial Conduct Authority's Disclosure and Transparency Rules.

For further information, please contact:

 
Bezant Resources Plc 
 Bernard Olivier                            Tel: [phone] 
 Chief Executive Officer 
 
 Laurence Read                              Tel: [phone] 
 Executive Director / Communications        9923 
 Officer 
 
 Strand Hanson Limited (Nomad)              Tel: [phone] 
 James Harris / Matthew Chandler            3494 
 / James Dance 
 
 Beaufort Securities Limited (Broker)       Tel: [phone] 
 Elliot Hance                               8300 
 
 Peterhouse Corporate Finance 
 Lucy Williams/ Duncan Vasey/               Tel: [phone] 
 Heena Karani                               0930 
 
 
 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.

- ENDS -

This information is provided by RNS

The company news service from the London Stock Exchange

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October 05, 2017 02:00 ET (06:00 GMT)