Bezant Resources PLC (AIM:BZT), the copper-gold exploration and development company, said it has entered into a conditional share purchase agreement (SPA) with IDM International, the Australian mining company. for the Mankayan copper development in the Philippines.
Part of the agreement will see Bezant swap its 27.5% holding in IDM Mankayan for an equal stake in IDM International.
IDM Mankayan was established by IDM International last year as a “special purpose vehicle” to enter the Mankayan project.
According to a statement, IDM International has similar SPAs with the other companies with stakes in IDM Mankayan and, upon completion, IDM International will own 100% of IDM Mankayan.
“We are very confident that management in the Philippines supported by IDM International has the experience and expertise to take the project forward through the next stages of evaluation and development which will significantly enhance the value of the project,” said Bezant's executive chairman Colin Bird.
Bezant also entered into a convertible loan agreement with IDM International to invest A$137,500 in IDM International.
IDM International has also entered into convertible loan notes with entities associated with two of its directors to raise A$362,500, a statement from Bezant said.
Pre-feasibility studies at Mankayan are expected to be completed during 2023 and 2024, presenting the project as a “globally significant copper-gold project at a time when the supply-demand gap for copper is expected to be large as the world transitions to electrification.”