RNS out13 Sep 2021 08:15
Mankayan Project Update
Bezant (AIM: BZT), the copper-gold exploration and development company, further to its announcements on 28 April 2021 regarding the termination of its transaction with Mining and Minerals Industries Holding Pte Ltd. ("MMIH") in relation to the Mankayan project ("MMIH Transaction Agreement") , has entered into a conditional agreement with IDM Mankayan Pty Ltd ("IDM"), a company incorporated in Australia, to take the Mankayan Project in the Philippines forward (the "IDM Agreement").
Highlights:
IDM to acquire Asean Copper Investments
IDM will acquire 100% ownership of Asean Copper Investments Ltd ("Asean Copper") which holds its interest in the Mankayan project through the Asean Copper Ownership Structure defined below and which was the subject of the previous MMIH Transaction Agreement.
Bezant ownership
Bezant will own 27.5% of IDM with the remaining 72.5% owned by es tablished investors in the mining sector (the "Other IDM Shareholders").
Initial funding
Bezant will provide A$90,000 (approximately GBP48K) of initial funding and the Other IDM Shareholders will provide A$210,000 (approximately GBP 112K) ("Initial Funding").
Initial objective
IDM's initial objective is to assist and support Crescent Mining Development Corporation ("CMDC") in its application to renew t he Mineral Production Sharing Agreement No. 057-96-CAR (the " MPSA ") in respect of the Mankayan Project which is due for renewal on 11 November 2021. CMDC submitted its renewal application on 16 March 2021 to the Mines and Geosciences Bureau of the Department of Environment and Natural Resources of the Philippines government.
Bezant a nti-dilution protection
Upon the renewal of the MPSA and the payment of the Conditional Renewal Proceed Payment defined below of up to A$500,000 due by IDM to MMIH is to be funded by the Other IDM Shareholders.
Accordingly Bezant's shareholding in IDM will be increased to 27.5% of the then issued share capital of IDM after the payment of the Conditional Renewal Proceed Payment.
Colin Bird, Executive Chairman of Bezant, commented:
"Bezant are pleased to be working with IDM whose financial and technical team have strong South East Asia experience. The Mankayan project is well placed to benefit from recent projections for the electrical vehicle and copper markets at a time when the Philippine government have announced that they wish to revitalise mining in the Philippines. We share IDM's view that the Mankayan project will be well received by the ASX market and that the proposed listing on the ASX will enhance value for IDM shareholders "
Background information
Asean Copper holds a 40 per cent. shareholding in Crescent Mining and Development Corporation (" CMDC "), which is incorporated in the Philippines and is the sole holder of Mineral Production Sharing Agreement No. 057-96-CAR (the " MPSA ") in respect of the Mankayan Project. As
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