Last checked at 2 Aug 2021 07:00
2 August 2021
Bezant Resources Plc
("Bezant" or the "Company")
Option Agreement with Caerus Mineral Resources PLC to
evaluate and develop copper gold projects in Cyprus
Bezant (AIM: BZT), the copper-gold exploration and development company, is pleased to announce it has entered into an exclusive option agreement commencing 1 August 2021 with Caerus Mineral Resources PLC (LON: CMRS) ("Caerus") to allow the parties to review Caerus extensive portfolio of copper / gold projects in Cyprus with a view to possible joint venture mining operations (the "Agreement").
Highlights:
· The exclusive option agreement grants Bezant 18 months to assess the merits and economic prospects of all Caerus potential copper / gold hard rock mining assets in Cyprus ("Caerus' Cyprus Properties").
· The Agreement provides for Bezant to review Caerus' Cyprus Properties and for both parties to identify one project as a potential development project.
· On identification of a project the parties agree to jointly fund and explore up to USD1million on the selected project.
· Should the project selected surpass the development criteria then Bezant and Caerus will form a joint venture company to develop the project.
· Bezant will be responsible for the designing, construction and operation of any mine developed under this agreement.
· Caerus' expenditure during the pre-mining exploration phase will be recovered from future cashflows and Caerus will retain a 20% beneficial interest in all future revenues.
Colin Bird, Executive Chairman of Bezant, commented:
"The mission of both Bezant and Caerus is to be well positioned in what is globally accepted to be the new copper supply deficit. We both believe that the deficit is very real and will need to be met by large and small mines.
The Caerus portfolio has the propensity to produce a number of secondary developments and/or primary developments and Caerus intends to meet the new copper demand by partnering with likeminded companies in this sector.
The arrangement benefits both parties in that Bezant will assist Caerus in fast tracking its assessment, whilst Bezant gains access to new small scale copper development assets.
We look forward to work with the Caerus team, who in our opinion, have assembled and positioned themselves with an extraordinarily gold/copper portfolio in a mining friendly jurisdiction."
Summary of Option Agreement
Effective Date
| 1 August 2021 |
Parties
| Bezant Resources Plc and Caerus Mineral Resources Plc |
Initial period | 18 months commencing 1 August 2021 with the option to be renewed by mutual agreement for a further 18 months
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Properties covered | (a) Any Caerus licence or rights to prospect, explore or mine any area in Cyprus which may contain primary copper, gold, or other minerals. In defining "Property" for the purpose of the Agreement, licences which are contingent or are within an area where both parties agree that they could be classed as contingent or where it is logistically or economically expedient to combine licences to achieve the targeted criteria in terms of tonnes copper and life of mine, they will form one property.
(b) During the initial 18-month Option period, any licence acquired, or any newly identified Property within Cyprus owned or operated by Caerus will be offered to Bezant on the same terms as this Agreement;
(c) Should Bezant be offered any properties, within Cyprus, during the 18 months commencing 1 August 2021, they will offer such properties to Caerus on the same terms as this Agreement;
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Technical committee | A Technical Committee will be formed consisting of two representatives from each party with Caerus nominating the chairman during the exploration phase. During the pre-production and production phases, Bezant will nominate the chairman. In neither case will the chairman have a casting vote. |
Property selection | Caerus and Bezant will, using best endeavours within 90 days of the Agreement, to nominate a property for primary exploration as a prospective underground or surface mine (the "Nominated Property").
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Exploration Management | a) Caerus has committed to an exploration program for the Nominated Property to NI 43-101 or JORC (2012) equivalent standards.
b) Each party has committed to fund and initial amount of up to US$500,000 during the period of exploration and project appraisal.
c) During the exploration period Caerus shall be the operator.
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Project Nomination | If a property meets the minimum criteria for development (a "Nominated Property") , Caerus will provide Bezant with a statement of all sunk costs made up to the point of making a development decision. "Sunk costs" will mean all licence fees, all direct fees and exploration costs, but will not include overhead cost external to Cyprus and local. These costs will be reimbursed as a priority or 'first charge".
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Joint venture structure | a) A special purpose vehicle will be incorporated for a Nominated Property ("Project JV Company").
b) On a decision to mine Bezant will be nominated as the operator and on a best endeavour's basis will be responsible for seeking funding for the Project JV Company.
c) 70% of all cash flows will be paid to Caerus until their exploration expenditure has been repaid and thereafter Bezant will receive 80% of all operating cashflows.
d) If Bezant wishes to fully fund an operation and Caerus does not wish to proceed then Bezant may proceed with the development of the mine providing Caerus with a 10% free-carried interest, after reimburse of Sunk Costs.
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Background on the Caerus' Cyprus Properties
The Caerus' Cyprus Properties break down into three copper-gold project areas: Kalavasos, Vrechia and Mathiatis. All project areas have evidence of historical exploration and mining. All permits have good access via surfaced and unsurfaced routes.
· The Kalavasos Project comprises five prospecting permits totalling 17.95 km2.
· The Vrechia Project comprises one prospecting permit totalling 1.96 km2.
· The Mathiatis Project comprises two prospecting permits totalling 2.06km2.
The Kalavasos Project area includes several abandoned mines, associated waste dumps and exposed gossans. Widespread ancient mine workings and slag dumps remain from the pre-Roman era of exploitation. In many cases, strong gossanous alternation at surface was targeted for gold and silver.
The Vrechia Project area includes the historic Mala pyrite mine and several known prospects. The area is characterised by the contact between the volcanic and sedimentary units along the southern flank of the Troodos Ophiolite Complex. Volcanic vents have been mapped in the area and are considered to be prospective for VHMS systems. The area is cut by numerous northwest-southeast-trending faults, which may be important for hydrothermal fluid flow and resultant deposition of potentially metal-rich fluids.
The Mathiatis Prospect area is in the north eastern part of the Troodos Ophiolite. There has been extensive mining locally, with five abandoned mines within the general project area. Granted Licence EA4649 covers the North Mathiatas mine where 2.1 Mt of pyrite ore at 0.2 % Cu was reportedly mined. There are also reports that between 1936 and 1938, 26,691 oz of Au and 154,719 oz of Ag were recovered from near-surface mining at 36 North Mathiatas and nearby South Mathiatas mines. There are significant dumps at North Mathiatas and other sites of prospectively.
(Source of the information regarding the Caerus' Cyprus Properties is Caerus' Prospectus dated 4 March 2021 which incorporates an independent technical report dated 18 December 2020 prepared for Caerus by Rocklore Exploration Services Limited, in accordance with the accepted principles of the NI 43-101 code).
For further information, please contact:
Bezant Resources Plc
Colin Bird Executive Chairman |
| |
Beaumont Cornish (Nominated Adviser) Roland Cornish
| +44 (0) 020 7628 3396 | |
Novum Securities Limited (Broker) Jon Belliss
| +44 (0) 20 7399 9400
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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 Regulation (EU) No. 596/2014.
Qualified Person:
Technical information in this announcement has been reviewed by Edward (Ed) Slowey, BSc, PGeo, technical director of Bezant Resources Plc . Mr Slowey is a graduate geologist with more than 40 years' relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and is a Qualified Person under the AIM rules. Mr Slowey has reviewed and approved this announcement.