SP26 Jun 2020 14:17
Bezant Resources (BZT) “is pleased to announce the conditional acquisition of 100% of Virgo Resources Ltd and its interests in the Hope Copper-Gold Project in Namibia, a £350,000 fundraising and the appointment of Beaumont Cornish Limited as its Nominated Adviser”…
The Virgo interests in Namibia are centrally located, approximately 100km to the south west of Windhoek, the capital of Namibia, and with good infrastructure. It is noted the Hope copper-gold project “contains a combined gross mineral resource of 10.18Mt at 1.89% Cu and 0.3 g/t Au at 0.7% cu cut-off reported in accordance with the JORC code (2012) with 192kt of contained Cu and 3,190kg of contained Au”, with “the vast majority of the area unexplored, especially by modern exploration techniques”.
This sees Bezant Executive Chairman Colin Bird emphasising “the acquisition represents an excellent opportunity to acquire a position in a significant JORC resource with good grades and a gold contribution. Namibia is an excellent jurisdiction with a long history of mining in the country… There exists considerable potential for discovering more copper and gold within the sizeable licence area and we look forward to advancing this exciting project in the short term”. He has supported that by taking £25,000 of a £0.35 million placing at 0.08p per share.
The fundraising and appointment of Beaumont Cornish are not pleasing – with the former comparing to a 0.12p prior close and latter amongst the worst Nomads. However, with a prior market cap here of £1.5 million, the options at the current stage are not really plentiful.
The proposed acquisition is for £85,600 in cash, £0.84 million of shares at a deemed price of 0.2p each and £0.135 million based on the Bezant share price at the date of settlement, with also some options and conditional deferred consideration. With it also noted the new funds also “to progressing the company's evaluation of the Kalengwa project in Zambia”.
As recently noted this, around an historic high-grade open pit copper mine with exploration data highlighting several strong geochemical/structural targets on the property many not previously drill-tested, looks to offer significant near-term potential from the current valuation. We continue to consider the shares could more than double from 0.11p as drilling excitement mounts and therefore the shares are currently still a buy.
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