Bezant Resources PLC (LON:BZT) has entered into a conditional transaction agreement to sell an 80% interest in the Mankayan copper project in the Philippines to Mining and Minerals Industries Holding Ltd.
MMIH has itself previously entered into a separate agreement to vend certain mining assets in the Philippines to China Hongxing Sports Limited, a public company listed on the main board of the Singapore stock exchange.
The consideration payable by MMIH comprises an initial funding package of US$2.25mln, plus further funding of up to US$5.5mln subject to the renewal of licencing agreements with the Philippine government.
MMIH will also issue of USS$10mln of shares in CHX to Bezant, subject to the successful completion of the abovementioned RTO Transaction.
"The Mankayan project is a significant copper-gold property and this agreement enables us to secure funding to progress the project whilst generating value for the company and its shareholders going forwards from a 20% shareholding,” said Laurence Read, Bezant’s chief executive.