Bezant Resources plc (LON:BZT) has raised £585,000 as it nears first production at its Choco gold and platinum project in Colombia.
First production at Choco is set to begin later this month and the money raised today will help fund the ramp up to full, regular production at the project shortly after.
Bezant raised the cash through a placing and subscription of 68.8mln new shares at 0.85p a piece, a 15% discount to Tuesday’s closing price.
A warrant to subscribe for a further one new share at 2p each will be issued for every two shares bought today. The warrants are exercisable for 12 months from the date of admission, which is expected to be next Tuesday (11 July).
“Today's fundraising will support the company as we seek to commence and then ramp-up to regular gold and platinum production at our Choco Project in Colombia,” said chairman Edward Nealon.
“I would like to thank our shareholders for their continued support as we continue to pursue a new economically attractive platinum and gold recovery model and I look forward to announcing first recoveries in the near term.”
The plant will process near-surface gravels from the regional alluvial deposit, using a proven mercury-free gravity fed system, to recover free gold and platinum that requires no further treatment or processing prior to sale.
The plan is for the plant to process 1,800 cubic metres of material per day at a cost of US$768 per ounce of platinum and gold recovered.
Bezant shares dipped 7.5%, or 0.08p, to 0.92p.