Bezant Resources PLC (AIM:BZT, FRA:BN5) (AIM: BZT) signed an exclusive option agreement with Caerus Mineral Resources Plc (LSE:CMRS) (LSE: CMRS) to review the portfolio of copper/gold projects held by Caerus in Cyprus.
Under the agreement, Bezant has been granted 18 months to assess the merits and economic prospects of the unexploited hard rock mining assets and both companies can identify one project as a potential development project.
"We are delighted to engage with Bezant at a time when the market demand for copper is so vibrant and is forecast to remain so for many years,” said Martyn Churchouse, chief executive of Caerus.
“This partnership will run in parallel with our agreement with Jubilee Metals Group and will allow us to pursue a dual strategy of exploring new underground and mineable resources whilst exploiting the value of our stockpiles of copper and gold-bearing waste,” he said.
The companies have agreed to fund an initial amount of up to US$500,000 each during the exploration and project appraisal stage. They will then form a joint venture company to develop the project if it surpasses the development criteria.
At the joint venture stage, 70% of all cash flows will be paid to Caerus until their exploration expenditure has been repaid and Bezant will then receive 80% of all operating cashflows.
Colin Bird, executive chairman of Bezant, echoed Churchouse’s comments about the outlook for copper.
"The mission of both Bezant and Caerus is to be well positioned in what is globally accepted to be the new copper supply deficit. We both believe that the deficit is very real and will need to be met by large and small mines,” he said.
“The Caerus portfolio has the propensity to produce a number of secondary developments and/or primary developments and Caerus intends to meet the new copper demand by partnering with likeminded companies in this sector.
“The arrangement benefits both parties in that Bezant will assist Caerus in fast tracking its assessment, whilst Bezant gains access to new small scale copper development assets.
“We look forward to work with the Caerus team, who in our opinion, have assembled and positioned themselves with an extraordinarily gold/copper portfolio in a mining friendly jurisdiction," Bird concluded.