(Alliance News) - Bezant Resources PLC on Friday announced it has completed the acquisition of Metrock Resources and its manganese mineral exploration licences, including the Kanye manganese project, in southern Botswana.
The copper-gold exploration and development company said the transaction, which was agreed in December, was completed by the issue of 150 million shares at a price of 0.27 pence per Bezant share, worth GBP405,000.
Shares in Bezant Resources were up 12% at 0.26 pence in London on Friday.
Bezant said it also has issued 84.6 million shares to acquire loans owed by Metrock of GBP198,213 and to settle other creditors owed GBP30,200. These will be issued to two of the vendors, with 50.4 million shares going to Breamline Pty Ltd and 5.9 million shares to M&A Wealth Pty Ltd.
London-listed Tiger Royalties & Investments PLC, of which Bezant Executive Chair Colin Bird also is chair, is due to receive 28.3 million Bezant shares as part of the loan settlements, representing a 2.2% stake in Bezant. This settlement is comprised of outstanding loans of GBP46,250 which it has made to Metrock, as well as Metrock's GBP30,200 fee.
Tiger said it is entitled to a net smelter return of 2% on the Kanye Manganese asset, which may be purchased by Bezant for a payment of GBP1 million, or on a partial basis at a buy-out rate of GBP250,000 per 0.5% of the net smelter return.
Bezant also paid AUD26,508, about GBP14,900, in cash to Metrock creditors.
Bezant also has been granted the EPL 7170 licence, which was under application when it acquired Virgo Resources Ltd back in June. It is now registered in the name of the group's 80% owned subsidiary Hope Namibia Mineral Exploration Pty Ltd in Namibia, which also owns the EPL 6605 licence. The EPL 7170 is valid until October 22, 2023, covering an area of 140 kilometres squared within the Hope copper-gold project area, which is in the Matchless copper belt in Namibia.
"We are excited regarding the completion of the acquisition of Metrock and its Kanye Manganese project, which is in an area that has clear evidence of high manganese grades suitable for use in battery metals. We have commenced planning an initial exploration programme involving reconnaissance field work and trenching and drilling as appropriate," said Bird.
"The acquisition of EPL 7170 is very exciting in that we now have a 130 kilometres tract in the Matchless copper belt which has not been explored and is highly prospective. The area will be helicopter flown in the first half of this year to expedite target generation and hopefully expand our copper gold inventory in the area. This at a time when the medium term price outlook for copper continues to increase with reports on scarcity of new projects and increasing demand due to the acceleration of enterprise value global production," he added.
By Zoe Wickens; zoewickens@alliancenews.com
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Bezant Res (BZT)
Tiger Resource (TIR)