19th Dec 2007 08:00
Bezant Resources PLC19 December 2007 Bezant Resources Plc ("Bezant Resources" or "the Company") and its subsidiaries (together "the Group") Results for the year ended 30 June 2007 Bezant Resources Plc (BZT.L), the AIM listed exploration and development company with gold and copper assets in the Philippines, along with gold assets in Tanzania, is pleased to announce its results for the year ended 30 June 2007. Highlights: •Copper and Gold prices and outlook remain favourable •Strong cash position of £1.63m at the year end •Both projects producing excellent results from drilling campaigns to-date •Encouraging share price performance despite general stock market turmoil Clive Sinclair-Poulton, Chief Executive, commented: "I am very pleased with the excellent progress being made. We have committed funds to deliver results at both our projects and the drilling campaign in our Philippine licence area, in particular, has the potential to increase significantly our already considerable asset base there. I am also encouraged by the strength of our share price performance despite well documented turmoil in world stock markets and would like to take this opportunity to thank our shareholders, partners and staff for their continuing support." For further information, please contact: Bezant Resources Plc Tel: +353 (0)85 739 2674Clive Sinclair-PoultonEmail: [email protected] Strand Partners Limited Tel: +44 (0) 20 7409 3494James Harris Media enquiries: St Swithins PR Limited Tel: +44 (0)7951 603 289Gary MiddletonEmail: [email protected] CHAIRMAN'S STATEMENT It is with great pleasure that I am able to report that Bezant Resources Plc hasbegun to realise its true potential over the course of the last eighteen months,concerning our ongoing transition from an investment company to that of a fullyfunded, operational exploration and development company. The Reverse Takeover of Tanzania Gold Limited and associated Placing to raiseapproximately £2.44 million (before expenses) was completed on 29 September2006. The Management Team was also strengthened considerably at this time, withthe appointment of Clive Sinclair-Poulton as Chief Executive Officer and MarkBurchnall as Executive Director, along with Melissa Sturgess and Tony Hopkins asNon-Executive Directors. The Company also changed its name from Voss Net Plc toTanzania Gold Plc to reflect its newly acquired assets in Tanzania. The firsttwo stages of our exploration programme on the Mkurumu Project in Tanzania,reached fruition on 6 November 2007, when we announced that AngloGold Ashanti'ssubsidiary, the joint venture partner, had formally acknowledged conformance toboth our expenditure and environmental commitments within the Joint Venturelicence area. Anglo Tanzania Gold Limited, a wholly owned subsidiary of theCompany, now holds 46% of the Mkurumu Project, with AngloGold Ashanti retaininga similar 46% and the remaining 8% being held by Tanzanian locals. During this period of exploration activities, the Company incurred a loss aftertax for the financial year ended June 2007 of £685,676. On 10 July 2007, the Company completed it's acquisition of Asean CopperInvestments Limited ("Asean") and a Subscription to raise approximately £5million (before expenses), with the Company name again being changed to BezantResources Plc to better reflect the Company's diversification concerning Countryof operation and resources. Asean holds a 40% interest in Crescent Mining andDevelopment Corporation, which in turn holds the MPSA (Mineral and ProductionSharing Agreement) or Mining Licence covering 534 hectares located in theMankayan - Lepanto mining district, approximately 240 kilometres north of Manilain the Philippines. The Licence area has already been subject to significantprevious exploration, in the order of approximately 45,000 metres of diamonddrilling over 48 holes, with an historic Resource estimate in the order of 166.5million tonnes at approximately 0.52% Copper and 0.54 g/t Gold. A two yeardrilling and environmental programme had already been submitted by Asean andthis has recently been approved by both the Mines and Geosciences Bureau and theDepartment of Environment and Natural Resource respectively. This programme isintended to improve the ore body delineation and further define the Resource toformal JORC Compliance through our additional diamond drilling of approximately11,000 metres over 10 holes, which shall also include a complete engineering andmetallurgical data update. To further compliment the expertise of the Board, it was also a pleasure toannounce the appointment of Dr. Bernard Olivier as Technical Director and Mr.Ronnie Siapno as a Non-Executive Director of the Company on 26 April 2007 and 24October 2007 respectively. On 24 October 2007 Melissa Sturgess stepped down fromthe Board, due to her other work commitments, having made an outstandingcontribution towards the Company's transition from being an investment companyto a fully funded and operational exploration company. In addition, Tony Hopkinsannounced his retirement from the main Board of the Company but continues as aNon-Executive Director of the Company's wholly owned subsidiary, Anglo TanzaniaGold Limited. I would like to thank our shareholders for their ongoing patience and supportthroughout our significant transition and I remain most confident that theirloyalty shall be rewarded during the further development and completion of ourexisting projects. I am most encouraged by our progress to date and remain confident of ourprospects throughout 2008. The Board looks forward to reporting further progressto shareholders during the first quarter of next year. G A NealonChairman CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 30 JUNE 2007 2007 2006 Notes £'000 £'000 Group Turnover - - Cost of sales - - _________ _________ Gross profit - - Administration expenses (720) (130) _________ _________ Group Operating loss (720) (130) Interest receivable 34 -Interest payable - - _________ _________ Loss on ordinary activities before taxation (686) (130) Taxation - - _________ _________ Loss on ordinary activities after taxation (686) (130) ======== ======== Loss per ordinary share (pence) 2Basic (3.31p) (0.07p)Diluted (3.31p) (0.06p) CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESFOR THE YEAR ENDED 30 JUNE 2007 2007 2006 Notes £'000 £'000 Retained loss for the year (686) (130) Exchange differences on retranslation of net 15 -Assets of foreign currency operations _________ _________ Total recognised losses relating to the year (671) (130) ======== ======== CONSOLIDATED BALANCE SHEETAS AT 30 JUNE 2007 2007 2006 Notes £'000 £'000 £'000 £'000 Fixed assetsIntangible assets - goodwill 4,331 -Tangible fixed assets 4 -Investments 458 - _________ _________ 4,793 - Current assetsDebtors 196 98Cash at bank and in hand 1,625 3 _________ _________ 1,821 101 Creditors: amounts fallingdue within one year (137) (49) _________ _________ Net current assets 1,684 52 _________ _________ Total assets less current 6,477 52liabilities ======== ========Capital and reservesCalled up share capital 3 987 958Share premium account 4 10,576 4,180Share based payment reserve 6 -Other reserves 680 -Profit and loss account 4 (5,772) (5,086) _________ _________Total shareholders' funds 5 6,477 52 ======== ======== CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 30 JUNE 2007 Notes £'000 2007 £'000 2006 £'000 £'000Net cash outflow fromoperating activities 6 (505) (194) Returns on investments andservicing of financeInterest received 34 - _________ _________Net cash outflow beforemanagement of liquid 34 -resources andfinancing _________ _________ (471) (194)Capital expenditurePayments for plant and (5) -equipmentPayments to fund Mkurumuproject operations (458) - _________ _________ (463) -FinancingCash proceeds from issue of 2,561 25sharesPlacement funds received in 665 -advanceShare issue costs (688) - _________ _________ Net cash inflow from 2,538 25financing _________ _________ Foreign exchange movement 18 - Increase/(decrease) in cash 7 1,622 (169) ======== ======== NOTES TO THE AUDITED FINANCIAL INFORMATIONFOR THE YEAR ENDED 30 JUNE 2007 1. Basis of preparation The financial information has been prepared in accordance with applicableaccounting standards in the United Kingdom and under the historical costconvention. The financial information contained in this announcement does not constitutefull statutory accounts within the meaning of Section 240 of the Companies Act1985. The figures are extracted from the audited full financial statements forthe year ended 30 June 2007 which will be filed with the Registrar of Companies. 2. Loss per ordinary share The basic loss per ordinary share has been calculated using the loss for theyear and the weighted average number of ordinary shares in issue during the yearas follows: 2007 2006 £ £ Loss for the year (686,000) (130,000) ======== ======== Number NumberWeighted average number of ordinary shares 20,714,489 198,927,309 ======== ======== Basic loss per share (pence) (3.31p) (0.07p) ======== ======== The diluted earnings per ordinary share, as defined in FRS 22, has beencalculated on the following basis: 2007 2006 £ £ Loss for the year (686,000) (130,000) ======== ======== Number NumberDiluted weighted average number of shares in issue 20,714,489 208,902,309 ======== ========Diluted loss per share (pence) (3.31p) (0.06p) ======== ======== 3. Share capital 2007 2006 £'000 £'000Authorised690,432,500 Ordinary shares of 0.2p each 1,381 1,381(2006: 13,808,650,000 Ordinary shares of 0.01p each)7,959,196 Deferred shares of 4p each 318 318625,389 Deferred shares of 99p each 619 619 _________ _________ 2,318 2,318 ======== ========Allotted, called up and fully paid24,524,345 Ordinary shares of 0.2p each 49 20(2006: 199,036,898 Ordinary shares of 0.01p each)7,959,196 Deferred shares of 4p each 319 319625,389 Deferred shares of 99p each 619 619 _________ _________ 987 958 ======== ======== The movements in the Company's share capital and warrants are summarised asfollows: Number of Number of shares warrants* As at 1 July 2006 199,036,898 500,00029 September 2006 - 1 for 20 consolidation (189,085,053) - ________ ________ 9,951,845 500,00029 September 2006 - Acquisitionshares issued 9,000,000 -29 September 2006 - Placement sharesissued 5,072,500 -5 February 2007 - Exercise ofwarrants for cash 500,000 (500,000) ________ ________As at 30 June 2007 24,524,345 - ======= ======= * Strand Warrant• Pursuant to an instrument adopted by the Company on 4 September 2006,the Company granted Strand Partners Securities Limited a warrant to subscribefor New Ordinary Shares. The principal terms of the Strand Warrant are asfollows:• Strand Partners Securities Limited will be entitled to subscribe at aprice of 50 pence per share for such number of New Ordinary Shares as areequivalent (on a fully-diluted basis) to one and a half per cent. of the issuedordinary share capital of the Company at the time of exercise;• the Strand Warrant may be exercised at any time during the period offive years from the date of Admission;• New Ordinary Shares issued on the exercise of the Strand Warrant willrank for dividends or other distributions declared, made or paid by the Companyafter the date of exercise, but not before such date, and otherwise equally inall respects with the New Ordinary Shares in issue on the date of such exercise;• the number of New Ordinary Shares issued on exercise of the StrandWarrant and the subscription price will be adjusted upon a capitalisation ofreserves, a rights issue or on a sub-division or consolidation of share capital;and• if a takeover offer is made to all holders of New Ordinary Shares, theCompany will use its reasonable endeavours to procure a comparable offer toStrand Partners Securities Limited. 4. Statement of movements on reserves Share Other Share based Foreign reserves premium payment exchange - for own Profit and account reserve reserve shares loss account £'000 £'000 £'000 £'000 £'000 Balance at1 July 2006 4,180 - - - (5,086)Cost ofshare-basedpayments - 6 - - -Share issues 7,032 - - - -Share issuecosts (636) - - - -Placementfunds received - - - 665 -Currencytranslationdifferenceson foreign operations - - 15 - -Deficit forthe year - - - - (686) _________ _________ _________ _________ _________At 30 June 10,576 6 15 665 (5,772)2007 ======== ======== ======== ======== ======== 5. Reconciliation of movements in shareholders' funds 2007 2006 £'000 £'000 Loss for the period (686) (130)Proceeds from issues of shares 6,425 25Placement funds received in advance 665 -Currency translation differences on foreign currencyoperations 15 -Cost of share based payments 6 - _________ _________Net increase/(decrease) in shareholders' funds 6,425 (105)Opening shareholders' funds at start of the year 52 157 _________ _________Closing shareholders' funds at end of the year 6,477 52 ======== ======== 6. Reconciliation of operating loss to net cash outflow from operatingactivities 2007 2006 £'000 £'000 Operating loss (686) (130)Depreciation and amortisation 170 -Interest income (34) -Share-based payment charge 6 -VAT refunds received 49 -(Increase) in debtors (98) (92)Increase in creditors 88 28 _________ _________Net cash outflow from operating activities (505) (194) ======== ======== 7. Analysis of change in net funds 2006 Cash flows Non-cash 2007 Changes £'000 £'000 £'000 £'000 Cash at bank and in hand (netfunds) 3 1,622 - 1,625 ======== ======== ======== ======== 8. Post balance sheet events On 9 July 2007, at the Company's Extraordinary and Annual General Meetings,resolutions in relation to the proposed acquisition of the entire issued sharecapital of Asean Copper Investments Limited ("Asean") and the proposed offer forsubscription of 6,666,667 new ordinary shares of 0.2 pence each at a price of 75pence per share to raise £5 million gross were duly approved by Shareholders. Asean has a 40% shareholding in Crescent Mining and Development Corporation("Crescent"), a Filipino company. Asean also holds a conditional option,expiring in October 2009, to acquire the remaining 60% of Crescent for minimalconsideration. Crescent holds an MPSA covering a total of 534 hectares (the"Mankayan project") in the Guinaoang area of the Philippines, which is locatedin the Mankayan-Lepanto mining district, an area of established copper and goldmining, which is considered to be one of the major porphyry copper belts in thePhilippines. On 23 August 2007, the Company announced details of its proposed drillingprogramme on the Mankayan project, which subsequently commenced in September2007. The two year drilling programme, which has been approved by the Filipinogovernment, is intended to further define the copper/gold asset already known tobe present in the licence area. In respect to the Company's Tanzanian operations, on 6 November 2007 the Companyannounced that its wholly owned subsidiary, Anglo Tanzania Gold Limited("ATGL"), now holds a 46% interest in the Mkurumu project, having satisfied itsexploration expenditure obligations under the joint venture arrangement relatingto that project. This gives the Company a strong and important strategic stakein the project as well as giving greater exposure to the potential upside fromthis asset. 9. Report and financial statements Copies of the report and financial statements for the financial year ended 30June 2007 will be available from the registered office of the Company, StAlphage House, 2 Fore Street, London, EC2Y 5DH from 20 December 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Bezant Res