REG - Bezant Resources PLC - Collaboration Agreement re Zambian gold project

Bezant ResourcesAnnouncement

10/06/2024 07:00

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RNS Number : 7030R  Bezant Resources PLC  10 June 2024

10 June 2024

Bezant Resources Plc

("Bezant" or the "Company")

Collaboration Agreement re Zambian gold project

 

 

Bezant Resources Plc ("Bezant Resources", "BZT" or the "Company") is pleased
to announce that it has signed an exclusive collaboration agreement with PCB
Mining Limited ("PCB Mining") in relation to its small scale exploration
licence 24988-HQ-LEL in Zambia ("PCB Licence"). Bezant will earn a 15%
interest in the PCB Licence / PCB Mining ("PCB Project") by providing a
project restart plan for PCB Mining and assisting PCB Mining in obtaining
financing for the project restart.

 

Highlights

 

·    PCB Licence covers 375 ha and is situated in North West Zambia.

 

·    Bezant will earn a 15% interest by developing a project restart plan
for PCB Mining and for assisting PCB Mining in obtaining finance for a project
restart (the "Services" as defined below).

 

·    Bezant has the right but not the obligation to match the terms
offered by a mine contractor in relation to the project restart. In the event
that Bezant  exercises its right to match then it will be issued a 40%
shareholding in PCB Mining (inclusive of the 15% interest for providing the
Services).

 

·    Previous artisanal gold prospecting and extraction has highlighted a
5-6m wide quartz vein on the PCB Project which defines a potential target to
be tested by trenching or drilling, to determine its length and
mineralization. There is also alluvial potential in adjacent streams.

 

·    Several other quartz veins are exposed elsewhere in the area which
have been little-explored as focus in this region has historically been on
copper and cobalt.

 

Colin Bird, Executive Chairman of Bezant, commented

"We are pleased that Bezant is entering Zambia which, although primarily
associated with copper in recent years has also become highly prospective for
gold and other commodities. The PCB Project area has been the subject of
active artisanal mining and our technical team has previously visited the PCB
Project site and identified a 5-6 metre wide quartz vein potentially hosting
gold that is of indeterminate length.

 

The arrangement with PCB Mining allows Bezant to further its exploration and
development strategy, without a funding requirement. The initial objectives
will be to i) assess the prospects for a small-scale mining operation and ii)
to construct an exploration program to determine scalability."

 

PCB Mining exclusive collaboration agreement

On 7 June 2024 Bezant  entered into an exclusive collaboration agreement with
PCB Mining Limited ("PCB Mining") in relation to its small scale exploration
licence 24988-HQ-LEL in Zambia ("PCB Licence"). Bezant will earn a 15%
interest in the PCB Licence / PCB Mining by providing a project restart plan
for PCB Mining and assisting PCB Mining in obtaining financing for the project
restart. The key commercial terms are:

 

1. Services to be provided: PCB Mining have advised there is a plant on site
owned by PCB Mining and PCB Mining wish to appoint Bezant on an exclusive
basis for 180 days to;

 

a.   prepare and construct a capital and operating cost budget to recommence
mining operations at the Project ("Project Restart"); and

 

b.   assist PCB Mining in obtaining finance for the Project Restart and the
appointment of a mine contractor and engineering consultant to oversee the
recommencement of the Project Restart

(the "Services").

 

2. Commencement of Services: Bezant are to commence the Services within 15
days of the agreement.  Commencement is defined as both physical activity
within the Licence boundaries and desktop studies related to the Services
which will include technical, financial and legal due diligence in relation to
a project of this nature.

 

3. Fee for Services: The fee for the Services is a 15% interest in the PCB
Licence and / or PCB Mining.

 

4. Trigger for Issue of 15%: In the event of the completion of funding for the
Project Restart or a proposed change of control of PCB Mining and or sale of
equity in or joint venture of PCB Mining or the Project ("Trigger Event") then
Bezant has the right to be issued by PCB Mining that number of PCB Mining
shares ("Bezant's PCB Mining shares") that taking into account Bezant's PCB
Mining shares equals 15% of PCB Mining's issued share capital as enlarged by
the issue of the Bezant's PCB Mining shares and the issue of any unissued
shares or shares related to options or other rights to subscribe for PCB
Mining shares.

 

5. Right to Match: Bezant have the right but not the obligation to match the
terms offered by a mine contractor in relation to the Project Restart ("Right
To Match").  In the event that Bezant exercise their Right To Match then
Bezant will be issued a 40% shareholding in PCB Mining (inclusive of the 15%
Fee for the Services).

 

6. No commitment to Obtain Financing: Bezant makes no representation or
commitment that it will be able to obtain funding for the Project Restart.

 

Licence Information: As per Zambia Mining Cadastre accessed on 7 June 2024:

1) Licence 24988-HQ-LEL is a small scale exploration licence covering 375.4434
ha in the name of PCB Mining Limited (the "PCB Licence");

2) The PCB Licence was applied for on 24 June 2019 and the granted on 11
January 2023 and has an expiry date of 10 January 2027; and

2) The PCB Licence is for cobalt, copper, gold, iron ore, lead, manganese,
silver, zinc.

 

The PCB Licence is located in the north-western province of Zambia. The PCB
Licence was subject to a dispute over ownership between PCB Mining and ZCCM-IH
to which PCB Mining obtained judgment in its favour dated 11(th) September
2023. The Company understands from PCB Mining that ZCCM-IH has not exercised
its right to appeal within the stipulated time and so have no legal claim to
the PCB Licence but notwithstanding this it is possible that the PCB Licence
could in the future be subject to further or new challenges or other
disagreements.

 

Geology, location and prospectivity: Regionally, the area is underlain by a
mixed series of partially metamorphosed sediments, comprising dolomitic
sandstone, siltstone, sandstone and quartzite. Multiple steeply-dipping quartz
veins with variable strike directions have been noted, mainly associated with
the margins of the quartzite units.

 

There appears to be a vein conjunction within the PCB Licence where a 5-6m
wide quartz vein hosted in weathered iron-rich clays was previously the focus
of unlicensed artisanal gold activity over a strike length of 25-30m above
surface. This vein can be seen at surface to host traces of malachite and
chalcopyrite copper mineralisation and defines a potential target to be tested
by trenching or drilling, to determine its length and mineralization.

 

Elsewhere both on the property and on adjoining ground further quartz veins
occur and significant artisanal gold diggings have been seen along nearby
drainages.

 

Overall, it is believed that potential exists for multiple gold-mineralised
veins and structures.

 

Information on PCB Mining: PCB Mining Limited was registered on 28 November
2018 in Zambia with company number 120180010015 and its main activity is the
PCB Project. The non-executive chairman of PCB Mining is Caleb Amos Mulenga
and its executive director is Lukonde Makungu who is also an executive
director of Cooperlemon Consultancy Limited which is a private Zambian based
mining consultancy firm.

 

For further information, please contact:

 Bezant Resources Plc

+44 (0) 20 3416 3695
 Colin Bird Executive Chairman
 Beaumont Cornish (Nominated Adviser)       +44 (0) 20 7628 3396

Roland Cornish / Asia Szusciak
 Novum Securities Limited (Joint Broker)

 Jon Belliss                                +44 (0) 20 7399 9400
 Shard Capital Partners LLP (Joint Broker)

 Damon Heath                                +44 (0) 20 7186 9952

Beaumont Cornish (Nominated Adviser)

Roland Cornish / Asia Szusciak

+44 (0) 20 7628 3396

Novum Securities Limited (Joint Broker)

Jon Belliss

 

+44 (0) 20 7399 9400

Shard Capital Partners LLP (Joint Broker)

Damon Heath

 

+44 (0) 20 7186 9952

 

or visit http://www.bezantresources.com (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 as it forms part of UK Domestic Law pursuant to the Market
Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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.

 

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