6th May 2008 07:02
Bezant Resources PLC06 May 2008 BEZANT RESOURCES PLC ("Bezant" or the "Company") Memorandum of Understanding ("MoU") signed to acquire up to50 per cent. of prospective gold tenements in Tanzania Highlights: Bezant has signed a MoU to enable it to acquire up to a 50 per cent. interest incertain Tanzanian tenements, via a two year earn-in arrangement, in return forthe immediate issue of two million new ordinary shares in Bezant and explorationfunding of US$800,000 (capped at US$100,000 per quarter). Existing package of 9 highly prospective tenements, together with ProspectingLicences covering 2,116 square kilometres. Additional 3 applications lodged, for either new licenses or renewals, coveringa further 455 square kilometres. Bezant will have full operational access at the tenements. Bezant (AIM: BZT), the AIM listed exploration and development company with goldand copper assets in the Philippines and gold assets in Tanzania, todayannounces that it has signed a MoU, with Green Hill Mining Company Limited ("GHM") and Tanzania Mineral Exploration Company Limited ("TMEx"). The MoU provides for Bezant to acquire up to a 50 per cent. interest in certain Tanzanian tenements, held directly by either GHM or TMEx, and which are believed to be prospective for gold (the "Tenements"). Bezant has today issued two million new ordinary shares of 0.2 pence each ("Consideration Shares") to GHM and TMEx and has undertaken to contribute funding of US$100,000 per quarter over a two year period (a maximum of US$800,000 in aggregate) towards exploration activities on the Tenements, in return for an initial 30 per cent. interest and the right to progressively earn-in an interest of up to 50 per cent. Bezant will have full rights to any mining information derived or compiled in relation to the Tenements during that period and operational responsibility for exploration activities will be shared equally between Bezant and GHM. GHM and TMEx are specifically obliged to ensure that the Tenements remain in good standing. Upon expiry of the initial two year earn-in period, Bezant may elect to eitherwithdraw from the Tenements (and the MoU) without incurring any furtherliability or it may instead decide to continue exploration activity on theTenements, in which event the parties will seek to agree the basis upon whichthe funding of such further exploration will occur. The Consideration Shares, in which GHM and TMEx will together be interested,will represent approximately 5.11 per cent. of Bezant's enlarged issued sharecapital, will be fully paid and will rank pari passu with the Company's existingordinary shares of 0.2 pence each ("Ordinary Shares"). Following the issue ofthe Consideration Shares, the Company's issued share capital will consist of39,162,223 Ordinary Shares with voting rights. Bezant does not hold any OrdinaryShares in Treasury. Application will be made for admission of the Consideration Shares to trading onAIM. It is expected that admission will take place and that dealings in theConsideration Shares will commence on 9 May 2008. The aforementioned figure of 39,162,223 Ordinary Shares may be used byshareholders in the Company as the denominator for the calculations by whichthey will determine if they are required to notify their interest in, or changeto their interest in, the share capital of Bezant under the Financial ServiceAuthority's Disclosure and Transparency Rules. Details of the Tenements The Tenements initially comprise 2 prospecting licences located in the HandeniMorogoro Area and covering 202 square kilometres, plus 7 prospecting licenceslocated at Babati, Eyasi, Iringa, Mufindi and Rufuji covering some 1,914 squarekilometres. In addition, the Tenement package includes another 3 applications(already lodged) for the renewal of or new prospecting licences applied for,that cover approximately a further 455 square kilometres in total. Additionaltenements that are prospective for gold, may be added to the package ofTenements (and thereby become subject to the MoU) at Bezant's election. Gerry Nealon, Executive Chairman, today commented: "I believe these initial Tenements could ultimately represent a significantvalue adding gold asset to Bezant, in addition to our current work programmes inTanzania and at the Mankayan copper-gold project in the Philippines. First passreconnaissance work to date, including satellite imagery and airbornegeophysical surveys, has identified several drainages producing free gold.Systematic heavy mineral drainage and rock sampling work is currently underwayat the tenements and I look forward to announcing further news from bothTanzania and the Philippines during the remainder of 2008." For further information, please contact: Gerry NealonChairman, Bezant Resources PlcTel: +61 41 754 1873 Bernard OlivierExecutive Director, Bezant Resources PlcTel: +61 40 894 8182 James Harris / Matthew ChandlerStrand Partners LimitedTel: +44 (0)20 7409 3494 Laurence ReadThreadneedle Communications (UK)Email: [email protected]: +44 (0)20 7936 9696Mob: +44 (0)7979 955 923 or visit www.bezantresources.com Notes for editors: Bezant is focussing primarily on the copper and gold mineral sector, in order toachieve maximum value for shareholders during the ongoing resources boom. Thecompany's core project remains the Mankayan copper/gold situated in theMankayan-Lepanto mining district of the Philippines, an area of establishedcopper and gold mining. The deposit is located approximately 240km north ofManila and 6km east of the copper/gold mine owned and operated by LepantoConsolidated Mining. Since its discovery in the early 1970s, extensive drilling(more than 45,000 metres in 48 holes) and metallurgical work has been undertakenby Goldfields Asia Ltd, Pacific Falkon and others. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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