(Alliance News) - Bezant Resources PLC on Monday said it has agreed to acquire a 30% interest in the Kalengwa exploration project in Zambia for USD750,000 as part of a joint venture.
Shares in Bezant closed 10% higher in London at 0.072 pence.
Copper-gold explorer and developer Bezant has signed a binding joint venture agreement with KPZ International to take a 30% interest in licence 24401-HQ-LEL, a large scale exploration licence in the greater Kalengwa area.
The licence is held by KPZ International Ltd subsidiary Kalengwa Processing Zone Ltd and is for the exploration of copper, silver, gold, cobalt and "other specified minerals. The licence was granted in April 2019 and is valid until April 2023.
Bezant said it will focus on "progressing the larger scale Kalengwa exploration project" and will not exercise is pre-existing option over Zambia's Buffalo project, allowing it to lapse on Thursday this week.
The total consideration for the 30% stake us USD750,000, with Bezant gaining "access to and operatorship of a large, strongly prospective exploration area surrounding the historic, high-grade Kalengwa open pit copper mine."
Previous third party production at the Kalengwa open pit mine was estimate at 1.9 million tonnes at a grading of 9.44% copper and 50 grams of silver per tonne of ore.
The first goal of the joint venture will be evaluating historic exploration data, which is "extensive, and picking targets for follow-up and early drilling.
Bezant Executive Chair Colin Bird said: "The Kalengwa area is a well-recognised copper exploration target based on the history of the high grade open pit as well as further identified targets, many of which have not yet been tested.
"We are delighted to have entered into this joint venture with KPZ Int and will seek to pursue an aggressive reconnaissance work programme to unlock the asset's inherent value potential. All the preliminary indications are that Kalengwa represents an above average copper exploration project and we look forward to commencing exploration activities in the near future."
By Anna Farley; annafarley@alliancenews.com
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Bezant Res (BZT)