Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Bezant Resources raises £550,000 in share placing

The company said it has already received approaches regarding potential project level investment.
Mining truck
A total of 110.2mln new shares will be sold at a price of 0.4p in a placing.

Bezant Resources plc (LON:BZT) raised £550,000 of new funds through an issue of new shares to investors.

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 

View full BZT profile View Profile

Bezant Resources plc Timeline

Related Articles

picture of gold pour
September 05 2017
Sener wants to do more work itself at Salinbas to see what’s there
1507550408_goldprice.jpg
October 09 2017
Favourable court decisions are obviously helpful, but Galantas remains focussed on the central business of developing a mine
picture of miners
September 04 2017
In August, the Aussie-listed group said production to June 2018 should be between 80,000-90,000 ounces of gold.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use