Bezant Resources plc (LON:BZT) shares skyrocketed on Wednesday as it struck a development deal for its near surface platinum and gold assets in Colombia, which could see initial recovery of the two metals in 2017.
Experienced Colombian contractor Exumax has been engaged for a planned 24-month exploration and development programme in the Choco region.
As part of the deal, Bezant will acquire a special purpose vehicle Birkenhead Estates, which holds certain geological data and IP, which Exumax will use.
Bezant chairman Edward Nealon told investors: "I have been seeking to establish a platinum production operation in Colombia for a long time, as I believe that the geological conditions and recovery potential are significant.
"Alluvial platinum, extracted using simple but well-built and efficient technology, offers a potential new production source for the metal, which is economically robust and not susceptible to high CAPEX and OPEX outlays."
Pedro Martins da Costa, CEO of Exumax, added: "Our task is to create an efficient, straight forward and low cost platinum production operation."
The key goals over the next two years include correlating the planned trial mining and exploration work with historical mining activities on the FKJ 083 licence area, with bulk sampling to begin in the fourth quarter of 2016.
The first recovery of platinum is targeted for 2017.
In January this year, Bezant said it had taken ownership of a string of alluvial platinum licences in Colombia after completing the acquisition of Leeward Islands Exploration.
Bezant paid US$1mln cash and 37.3mln in new shares for Leeward, which had options over 2,750ha of near-surface licences in the Choco district.
It wants to establish a low cost, recoverable platinum district outside South Africa.
Bezant shares today surged 56.25% to 3.125p.