A total of 110.2mln new shares will be sold at a price of 0.4p in a placing, while a further 27.28mln share issued on the same terms in a separate share subscription.
The funds will be used for working capital whilst it follows a new development funding strategy, which follows a review of development options for the Choco gold-platinum project in Colombia.
Production is to be suspended in order to reduce spending as the company seeks funding for the project’s full scale ramp-up, with either a project-level funding or a farm-in transaction.
The company said it has already received approaches regarding potential project level investment.
"It is with great disappointment that we have been unable to raise the required level of equity funding from the capital markets to progress our Choco Project into full-scale commercial production, despite the considerable work that has been completed to-date in successfully proving-up the project's viability and concept,” said Edward Nealon, Bezant chairman.
He told investors that the project remains an attractive and high quality asset, and the company is confident that it will be able to secure a deal.
Nealon added: "Today's unfortunate requirement for a highly discounted fundraising will enable us to pursue this revised funding strategy whilst also seeking to realise value from the other assets in our portfolio and I believe this strategy will deliver results without requiring us to continue raising further funds for mine production ramp-up in the equity markets."
Additionally, the company highlighted that the outlook is improving for commodity prices and interest expressed in the project in the region.
Nealon and are confident that we will, in due course, be able to secure the requisite development funding from an alternative source, such as a local farm-in partner at the asset level, to enable us to recommence production and fulfill the project's undoubted potential, particularly