28 April 2021
Bezant Resources Plc
("Bezant" or the "Company")
Termination of Transaction Agreement with MMIH
Bezant (AIM: BZT), the copper-gold exploration and development company, announces that it has served notice of termination of its transaction agreement (the "Transaction Agreement") dated 4 October 2019 with Mining and Minerals Industries Holding Pte. Ltd. ("MMIH"), a private company incorporated in Singapore, with respect to the sale of 80 per cent. of the Company's interest in the Mankayan copper-gold project in the Philippines (the "Mankayan Project") to MMJV Pte. Ltd. ("MMJV"), a 100 percent subsidiary of MMIH, (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 and updates were announced on 15 June 2020, 5 October 2020, 2 November 2020, 13 November 2020 and on 8 April 2021 when the termination of the proposed acquisition by AsiaPhos Ltd ("AsiaPhos") a company listed on the Singapore Exchange Securities Trading Limited (the "Singapore Stock Exchange" or "SGX") Catalist Board, of MMJV by way of a reverse takeover transaction was announced.
The Company has terminated the Transaction Agreement in accordance with its terms as MMIH has not met its Total Funding Commitment (defined below) under the Transaction Agreement, and is taking steps to recover the shares transferred to MMJV under the Transaction Agreement and is taking advice from Singapore counsel on the appropriate steps forward.
The consideration payable by MMIH under the Transaction Agreement comprised:
i) a funding commitment of up to US$2.25m (approximately £1.82m) to be deployed, inter alia, to satisfy the Exploration Period Requirements;
ii) subject to the MPSA being renewed following completion of the Exploration Period Requirements to the satisfaction of the relevant Philippine authorities, a further funding commitment of up to S$5.5m (approximately £3.23m) to be applied in undertaking a definitive feasibility study; and
iii) the issue of S$10m (approximately £5.87m) of shares in CHX or other listed entity holding MMJV on the Singapore Stock Exchange ("ListCo"), subject to successful completion of the abovementioned RTO Transaction.
The funding commitments in i) and ii) collectively are the "Total Funding Commitment".
Bezant, will explore and pursue options including the possibility of re-positioning the Mankayan project within the Company's portfolio of copper and gold assets. The Company will provide a further update(s) as and when appropriate.
For further information, please contact:
Bezant Resources Plc
+27 726 118 724
Beaumont Cornish (Nominated Adviser)
Novum Securities Limited (Broker)
+44 (0) 20 7399 9400
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 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").