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LONDON (Alliance News) - AIM-listed Bezant Resources PLC on Tuesday said it has raised GBP406,394 before expenses by selling new shares.
The mineral exploration and development company, which operates in the Philippines and Argentina, said that new and existing investors subscribed for 16.6 million new shares at 2.45 pence each. Shares in Bezant were untraded at 2.10p on Tuesday morning.
Edward Nealon, the company's chairman, is investing GBP134,750 for 5.5 million subscription shares, which will give him a total holding of 6.3 million shares and a 6.28% stake in Bezant.
The money will be used for working capital purposes and could help pay for a deal under which the company has the option to acquire the entirety of Leeward Islands Exploration LLC, a special purpose vehicle with rights to buy interests in platinum and gold mining licences in Colombia.
The deal, which was disclosed on November 16, required Bezant to pay an upfront option fee of USD50,000 and provide Leeward with a USD350,000 loan facility to cover working capital on the licences. If Bezant exercises the option, which will be valid until December 31, it will pay a USD1.0 million in cash and an equal amount in shares.
"We are delighted to announce this subscription which will enable us to progress with the potential exercise of the recently announced option over the Colombian platinum assets in the Choco Department. We believe that rapidly assessing and bringing into potential near term production such a new source of low-cost platinum production is a strategy that will deliver value for Bezant's shareholders in the current difficult market condition," Chief Executive Bernard Olivier said in a statement.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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