RNS - Choco disposal - Great news26 Apr 2018 11:06
Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, announces that is has entered into a legally binding agreement for the sale of its wholly owned subsidiaries Ulloa Recursos Naturales Naturales S.A.S ("Ulloa"), which holds the Group's wholly owned alluvial platinum and gold licences (FKJ-083 and HCA-082), located in the Choco region of Colombia, and associated processing plant, mobile test plant and other mining equipment located in the licence area (the "Choco Project"), to Auvert Mining Group Limited ("Auvert") (the "Disposal").
Further to the Company's announcement of 22 March 2018, the Board has been reviewing the Choco Project, located in Western Colombia, to assess its overall potential contribution to group performance. The Board has held discussions with a number of parties in relation to various strategic options for the Choco Project, including project financing, joint venture and disposal opportunities, concluding that the Disposal to Auvert is in the best interests of shareholders. Bezant will now pursue a strategy foccussed on building value from its copper gold assets comprised of the Mankayan project, Philippines and the Eureka project, Argentina.
The total consideration payable by Auvert to the Company in respect of the Disposal is, in aggregate, US$500,000 (approximately �358,600) payable in cash, of which US$450,000 has already been paid and the balance of US$50,000 is held in escrow with the Company's solicitors to be released subject to delivery and satisfactory receipt by Auvert of certain post-completion deliverables.
The Company will retain no liabilities in relation to Ullloa and Ulloa has no liabilities to the Company. An estimated $400,000/annum of ongoing cost related to non-mining activities to maintain the Choco project will be saved by the group following the Disposal. The Company has given certain representations and warranties to Auvert in connection with the sale of the shares in Ulloa, including, without limitation, in relation to the capacity of the Company to sell the shares of Ullloa, title to the shares of Ulloa and the licences associated with the Choco Project and the goodstanding of the Company and Ulloa. The losses attributable to Ulloa for the year ended 31 December 2017 are expected to be approximately �1.5m (unaudited).
The proceeds of the Disposal will be utilised to progress Bezants' copper-gold strategy and for general working capital purposes. Currently the Company is concluding a series of study reviews and site visits across both the Philipiennes and Argentinian copper-gold projects and will update the market shortly with its findings.
Laurence Read, CEO of Bezant, commented:
"As previously announced, following a full review of the groups operations the Board believes future value for the Company should be driven from the current portfolio of copper gold asse
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