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(Alliance News) - Shares in Bezant Resources PLC jumped on Monday as it entered a conditional agreement to sell its 80% interest in the Mankayan copper-gold project in the Philippines to Mining & Minerals Industries Holdings Pte Ltd.
Shares in the copper-gold miner were 67% higher at 0.22 pence on Monday in London.
Specifically, Mining & Minerals will acquire an 80% stake in Asean Copper Investments Ltd, the special purpose vehicle through which Bezant owns an interest in the Mankayan project.
As part of the agreement, Mining & Minerals entered a separate deal to vend certain mining assets in the Philippines to Singapore-listed China Hongxing Sports Ltd, which if completed would constitute a reverse takeover under the Singapore Stock Exchange's listing rules.
Mining & Minerals' consideration for the 80% stake comprises a funding commitment of up to USD2.3 million to satisfy exploration period requirements, a further funding commitment of up to USD5.5 million to be applied in creating a definitive feasibility study.
Finally, Mining & Minerals will issue SGD10.0 million, around USD7.2 million, in shares in China Hongxing to Bezant, should the reverse takeover be completed.
The disposal of the 80% Mankayan project stake is also conditional on approval from Bezant shareholders, completion of due diligence and regulatory approvals.
"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 in Asean Copper and a potential additional indirect minority interest in the project via a shareholding in a Singapore listed entity," said Chief Executive Officer Laurence Read.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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