Bezant Resources PLC (AIM:BZT) said it has secured a £1mln funding facility with Sanderson Capital Partners, one of the company’s long-term shareholders.
The copper-gold exploration group said the convertible loan note (where the debt can be turned into equity) is available in three tranches – at share prices of 0.19p, 0.225p and 0.25p.
Bezant said the convertible represents a standby facility that provides added financial flexibility for the group in a period in which “the funding market for junior exploration companies can be subject to market volatility”.
The upsurge in COVID-19 cases here in the UK and on mainland Europe is providing pause for thought in capital markets, chairman Colin Bird said in a statement.
He added: “At the corporate level it has reminded us that the unknown risk is around the corner and it is against this background that the board has decided to put in place the facility as insurance to ensure the company has the ability to obtain funding.”