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Bezant Resources PLC - Update on MMIH Transaction and Mankayan Project

RNS Number : 8890P
Bezant Resources PLC
15 June 2020
 

15 June 2020

Bezant Resources Plc

("Bezant" or the "Company")

Update on MMIH (Singapore) Transaction

and Mankayan Copper-Gold Project, Philippines

 

Bezant (AIM: BZT), the copper-gold exploration and development company, announces an update on its transaction with Mining and Minerals Industries Holding Pte. Ltd. ("MMIH"), a private company incorporated in Singapore, with respect to the disposal of 80 per cent. of the Company's interest in the Mankayan copper-gold project in the Philippines (the "Mankayan Project") (the "Transaction").  Full details of the Transaction were set out in the Company's announcement of 7 October 2019 and, unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as given to them in such previous announcement.  Completion of the Transaction was announced on 18 November 2019 with Bezant retaining a residual 20 per cent. interest in the project via Asean Copper.

 

Bezant has received an update from MMIH regarding, inter alia, its preparations in respect of the proposed listing of MMJV, its wholly-owned subsidiary which holds its 80 per cent. interest in the Mankayan Project, on the Singapore Stock Exchange via a reverse takeover transaction, the Exploration Period Requirements and funding commitments in relation to the MPSA and its operation of the Mankayan Project, as follows:

 

1.    MMIH, via China Hongxing Sports Limited ("CHX"), made a formal application to the Singapore Exchange Securities Trading Limited (the "Singapore Stock Exchange" or "SGX") to extend the time period in which to complete its proposed reverse takeover of CHX (the "RTO Transaction").  Such application was initially refused, but an appeal has subsequently been lodged on the grounds that the RTO Transaction has been hampered by the COVID-19 pandemic. MMIH is simultaneously pursuing alternative opportunities to achieve a potential listing and fundraising on certain other recognised global stock exchanges in the event that the targeted RTO Transaction or similar initial public offering on the SGX is unviable or cannot be achieved by the 31 December 2020deadline prescribed in the Transaction Agreement.

 

2.    The Philippines has only recently started to ease its COVID-19 lockdown restrictions which have severely restricted movement and required all non-essential offices to be closed, such that there has been no exploration activity at the Mankayan Project site since the local COVID-19 lockdown commenced in mid March 2020.

 

3.   Singapore has similarly been under a two month COVID-19 lockdown period and is also now slowly beginning to ease its restrictions.

 

4.  Accordingly, MMIH has advised Bezant that it has to date not been able to fulfil its expenditure commitments pursuant to the terms of the Transaction Agreement due to the abovementioned delays in their proposed RTO Transaction and, more recently, due to COVID-19 restrictions in the Philippines.  MMIH has communicated to Bezant that, to date, CMDC, the MPSA holder, has undertaken the following activities on the Mankayan Project:

 

·  submitted an application to the requisite Philippine Government Mining Agency seeking an extension to the exploration period and certain revisions to the associated work programme commitments under the MPSA to its scheduled expiry date of 11 November 2021;

·    engaged an independent expert to update the JORC 2004 resource information to JORC 2012; and

·   completed the technical and social audits for 2018 as required under the requisite Philippines Government Mining Agency rules and regulations.

 

Further to the above update and in light of the current COVID-19 uncertainties, the board of Bezant has decided to defer taking any action or granting any waiver, pending the outcome of the abovementioned extension application and/or receipt of further information on MMIH's listing and funding strategy, whilst reserving its position and rights under the Transaction Agreement.  The Company currently expects to receive such further information and clarification from MMIH during Q3 2020 and will provide a further update(s) as and when appropriate.

 

 

For further information, please contact:

Bezant Resources plc

Laurence Read

Chief Executive Officer

 

Colin Bird

Executive Chairman

 

Strand Hanson Limited (Nomad)

James Harris / Matthew Chandler / James Bellman

 

Novum Securities Limited (Broker)

Jon Belliss

 

or visit http://www.bezantresources.com

 

Tel: +44 (0)20 3289 9923

 

 

 

 

 

Tel: +44 (0)20 7409 3494

 

 

Tel: +44 (0)20 7399 9400 

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.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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