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Bezant Resources Raises GBP500,000, Halts Production To Seek Funding (ALLISS)

Wed, 6th Dec 2017 14:50

LONDON (Alliance News) - Bezant Resources PLC said on Wednesday it has raised GBP550,00 through a placing of 137.5 million shares, as it stops production to secure less "dilutive" funding to develop its project in Colombia.

The AIM quoted gold and platinum development company placed 110.2 million shares at 0.4 pence per share to via a placing arranged by Peterhouse Corporate Finance Ltd, and placed a further 27.3 million via a subscription.

Shares in were down 46% at 0.44 pence on Wednesday.

The net proceeds will provide additional working capital for the group whilst it pursues a revised development funding strategy, Bezant said.

Bezant said it has undertake a strategic review of the development options and requisite funding required to achieve a sustained full-scale commercial mining operation at its wholly-owned Choco gold-platinum project in Colombia.

Following the review it has decided that it is in the best interests of the company and its shareholders to temporarily halt production and reduce project expenditure whilst it seeks to procure the funding required to complete the full-scale ramp-up process through either project or asset level financing or an appropriate farm-in partner.

Bezant said as part of the review it has concluded that to continue pursuing mining development at the Choco Project financed through further equity raisings on the capital markets "would be overly dilutive to existing shareholders" and has therefore decided that following the operational development and proving-up of the project to date, there is greater scope to pursue "alternative, less dilutive, sources of finance".

Chairman, Edward Nealon, said: "It is with great disappointment that we have been unable to raise the required level of equity funding from the capital markets to progress our Choco Project into full-scale commercial production, despite the considerable work that has been completed to-date in successfully proving-up the project's viability and concept."

"We fundamentally believe that the project remains an attractive and high quality asset and are confident that we will, in due course, be able to secure the requisite development funding from an alternative source, such as a local farm-in partner at the asset level, to enable us to recommence production and fulfill the project's undoubted potential, particularly in light of the current improving outlook for commodity prices and interest expressed in the project in the region," Nealon added.

"Today's unfortunate requirement for a highly discounted fundraising will enable us to pursue this revised funding strategy whilst also seeking to realise value from the other assets in our portfolio and I believe this strategy will deliver results without requiring us to continue raising further funds for mine production ramp-up in the equity markets," Nealon said.

By Gem Sofianos;

Copyright 2017 Alliance News Limited. All Rights Reserved.

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