Bezant Res Regulatory News (BZT)

21 March 2017

Bezant Resources Plc

("Bezant" or the "Company")

Equity fundraising of approximately £1m gross

for near-term production strategy

Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, is pleased to announce that it has raised, in aggregate, £1,000,000 (approximately US$1.24 million) before expenses, through a conditional placement, via Beaufort Securities Limited ("Beaufort Securities"), of 100,000,000 new ordinary shares of 0.2 pence each in the capital of the Company (the "Placing Shares") (the "Placing") at a price of 1.0 pence per new ordinary share (the "Placing Price").

The Placing Price represents a discount of approximately 38.46 per cent. to the closing mid-market price of 1.625 pence per ordinary share on 20 March 2017 (being the latest practicable business day prior to the date of this announcement).

The Placing is conditional on admission of the Placing Shares to trading on AIM ("Admission"). Following Admission, the Placing Shares will represent, in aggregate, approximately 32.8 per cent. of the Company's enlarged issued ordinary share capital.

The Placing Shares have been conditionally placed by Beaufort Securities, as agent of the Company, with certain existing and new institutional and other investors pursuant to a placing agreement (the "Placing Agreement"). Under the terms of the Placing Agreement, Beaufort Securities will receive commission from the Company conditional on Admission of the Placing Shares and the Company will give customary warranties and undertakings to Beaufort Securities in relation, inter alia, to its business and the performance of its duties. Beaufort Securities will also receive, conditional on Admission of the Placing Shares, a warrant over 5,000,000 ordinary shares exercisable at a price of 1.5 pence per share and expiring two years from the date of Admission. In addition, the Company has agreed to indemnify Beaufort Securities in relation to certain liabilities that it may incur in undertaking the Placing. Beaufort Securities has the right to terminate the Placing Agreement in certain circumstances prior to Admission, in particular in the event that there has been, inter alia, a material breach of any warranties. The Placing is not being underwritten.

Use of Funds & Near-term Production Strategy

The net proceeds raised from the Placing will be utilised towards funding the next phase of the Company's mine development programme for its near surface platinum and gold project located in the Choco Region of Colombia.

The funds raised will directly be utilised for:

· Exercising certain existing options over Mining Licences in Colombia

· Pre-mining environmental costs

· Acquisition of processing plant

· Mobilisation and commissioning of processing plant

· Operational costs associated with initial mine development and first production

· General working capital purposes

The Company is currently targeting first production in late Q2 2017, with production ramp-up to full name plate capacity scheduled for H2 2017.

On 8 March 2017, the Company announced the completion of an independent scoping study on its Colombian platinum and gold project with the following main conclusions:

· The study confirmed the technical and economic feasibility of alluvial platinum (Pt) and gold (Au) production at the Choco Project based on historical data and drilling results.

· Financial modelling was based on stage 1 production using a single plant operation with a plant processing rate of 1,800m3/day ("Stage 1 Production")

· Comprehensive cost analysis and financial model enabled, inter alia, the calculation of the following key estimated parameters for Stage 1 Production over a 12 month operational period:

o US$768 per ounce total cost of production for platinum and gold recoveries

o US$6.01/m3 (US$4.29/tonne) total average mining and processing cost; and

o 0.17 grammes per tonne (238mg/m3) break-even grade for combined Pt and Au

Application to trading on AIM

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on 27 March 2017.

Following the issue of the abovementioned Placing Shares, the Company's total issued share capital will consist of 304,953,507 ordinary shares with voting rights. The Company does not hold any ordinary shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The Placing Shares will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares.

On Admission, the above figure of 304,953,507 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Bezant under the Financial Conduct Authority's Disclosure and Transparency Rules.

Edward Nealon, Chairman of Bezant, commented:

"Following an intense period of work delivering an independent scoping study assessing costs and our own gold and platinum recovery work, today we begin the journey into full production. Our objective is to rapidly bring a low-cost dry mining operation into development and start first production in late Q2 2017 from the platinum and gold fields located in the Choco province of Colombia. In the near term, we look forward to announcing further recovery results as well as updates on mobilisation and licence option exercise. Whilst we aim to generate initial revenues during 2017, we are also seeking to prove the economic model of a high margin, low capex, platinum & gold recovery operation in Western Colombia, a region where we hold significant acreage under option."

For further information, please contact:

or visit http://www.bezantresources.com

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").