REG - Bezant Resources PLC - Mankayan Project Update

Bezant ResourcesAnnouncement

06/02/2025 08:45

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RNS Number : 1721W  Bezant Resources PLC  06 February 2025

 

6 February 2025

Bezant Resources Plc

("Bezant" or the "Company")

Mankayan Project Update

IDM International Merger with ASX listed Blackstone Minerals Ltd

 

Bezant (AIM: BZT), the copper-gold exploration and development company,
announces that IDM International Limited ("IDM") through which the Company
holds its interest in the Mankayan Copper Gold project in the Philippines
("Mankayan Project") has announced a proposed merger with ASX listed
Blackstone Minerals Ltd ("Blackstone")("IDM Merger") . A copy of the IDM
International  announcement which is copied in its entirety below and is
available on its website at https://www.idminternational.com.au/
(https://www.idminternational.com.au/)   ("IDM Website") which provides
information on the IDM Merger to be effected by a scheme of arrangement
("Scheme" or "Transaction"). Under the Scheme IDM shareholders will receive
7.4 Blackstone shares for every 1 (one) IDM share they hold resulting in
approximately 692.1 million new Blackstone shares being issued, and implying
an equity value of AUD 18.7 million for IDM based on a Blackstone share price
of AUD0.0270.

 

On 5 February 2025 Bezant converted its AUD137,500 IDM Convertible Loan Note
(plus accrued interest) and received 752,143 IDM shares and 343,750 options to
acquire IDM shares at AUD0.40 expiring on 5 February 2029 ("IDM Loan Note
Conversion").

 

Prior to the IDM Loan Note Conversion Bezant owned 19,381,054 IDM shares which
were recognized in its 2023 accounts at AUD 20 cents per share equal to
£2,072,000 and the AUD137,500 IDM Convertible Loan Note was recognized in
Bezant's 2023 accounts at £78,000.

 

If the merger is completed Bezant will receive 148,985,657 Blackstone shares
and 2,543,750 options to acquire Blackstone shares at AUD0.06 expiring on 5
February 2029 for its IDM shares and IDM options.

 

Colin Bird, Executive Chairman of Bezant, commented

"We are very pleased to announce the proposed merger between IDM and
Blackstone Minerals which we believe will be a catalyst for the next stage of
development of the Mankayan Copper Gold Project and is a result of the
professional and diligent manner in which management in the Philippines
supported by IDM have been developing the Mankayan Project.  The Mankayan
Copper Gold Project is a Tier 1 asset and with the recognised copper shortfall
there is a need to bring large copper projects like the Mankayan Copper Gold
project into production to meet the copper supply shortfall being faced by
global markets."

 

The IDM International announcement dated : 6 February 2025 is in italics and
starts after the double line below and continues to the double line at the end
of this announcement

 

 

"IDM to Merge with ASX listed Blackstone Minerals Limited

IDM International Limited ("IDM") is pleased to announce that it has entered
into a binding Scheme Implementation Deed with Blackstone Minerals Limited
(ASX:BSX) ("Blackstone"), under which the two companies will merge by way of
an IDM Scheme of Arrangement ("Scheme" or "Transaction").

Please see attached Blackstone's ASX announcement "Blackstone Merger to
Acquire World Class Copper Gold Project" released on 6 February 2025 which
provides an overview of the Transaction and contains a copy of the Scheme
Implementation Deed ("SID").
https://investorhub.blackstoneminerals.com.au/announcements/6779996
(https://investorhub.blackstoneminerals.com.au/announcements/6779996)

For additional information on IDM please refer to:
https://www.idminternational.com.au/ (https://www.idminternational.com.au/)
 

For additional information on Blackstone please refer to:
https://www.blackstoneminerals.com.au/
(https://www.blackstoneminerals.com.au/)

Transaction Summary

Under the Scheme, IDM shareholders will receive 7.4 Blackstone shares for
every 1 IDM share they hold, resulting in approximately 692.1 million new
Blackstone shares being issued, and implying an equity value of $18.7 million
for IDM based on a Blackstone share price of $0.0270.

The IDM Board of Directors unanimously recommends that IDM Shareholders vote
in favour of the Scheme. Each IDM Director also intends to vote all the shares
that they hold (or control) in IDM in favour of the Scheme. These
recommendations and voting intention statements are subject to no Superior
Proposal (as defined in the SID) emerging and the Independent Expert
concluding (and continuing to conclude) that the Scheme is in the best
interests of IDM shareholders.

Implementation of the Scheme is subject to the satisfaction (or waiver, where
applicable) of conditions precedent that are detailed in Blackstone's ASX
announcement.

Benefits to IDM Shareholder

·      IDM shareholders to realise immediate value and liquidity in the
form of Blackstone scrip consideration, valuing IDM equity at $18.7 million
(equivalent to $0.20 per IDM share)

·      IDM shareholders to retain significant exposure to the
exploration and development of the world-class Mankayan Project

·      IDM gains exposure to Blackstone's advanced Ta Khoa Nickel
Project, and high-quality management with extensive experience in base metals
exploration and development, particularly in South East Asia

·      Exposure to market re-rating potential, trading liquidity and
potential for IDM shareholders to benefit from the merged entity attracting
greater market interest

·      Creation of strong growth platform to pursue further regional
consolidation and growth opportunities

·      Enhanced market profile, access to capital and relevance will
appeal to institutional investors and research analyst coverage

·      CGT rollover relief will likely be available for IDM shareholders

Options Offer

Conditional upon the Scheme becoming Effective and on all IDM option holders
entering into equivalent Option Cancellation Deeds, IDM option holders will
receive the following consideration for their options:

·      3.80 million IDM options (with an exercise price of $0.20 per
option expiring on 14 February 2026) will be cancelled in exchange for 28.12
million Blackstone options with an exercise price of $0.03 expiring on 14
February 2026;

·      6.25 million IDM options (with an exercise price of $0.40 per
option expiring on 1 November 2026) will be cancelled in exchange for 46.21
million Blackstone options with an exercise price of $0.06 expiring on 1
November 2026; and

·      1.25 million IDM options (with an exercise price of $0.40 per
option expiring on 5  February 2029) will be cancelled in exchange for 9.25
million Blackstone options with an exercise price of $0.06 expiring on 5
February 2029.

A Scheme Booklet containing the relevant information on the Scheme, including
the basis for the IDM Board's unanimous recommendation that IDM shareholders
vote in favour of the merger, an Independent Expert's Report and details of
the Scheme, will be distributed to all IDM shareholders.

Interim Funding Arrangement

Blackstone and IDM have also entered into an unsecured loan agreement pursuant
to which Blackstone has agreed to provide IDM with a loan facility of up to
$1.0 million to assist with IDM's working requirements through the Scheme
process and beyond ("Facility"). The Facility may be drawn down by IDM in
increments of $100,000 per month for 10 months and will accrue interest at the
"Cash Rate Target" published by the RBA plus 1%. Interest on each advance will
be capitalised at the end of each interest period where it will become part of
the principal outstanding.

Repayment of amounts outstanding under the Facility can either be in cash or
an equivalent amount by way of an issue of ordinary shares in IDM (at $0.20
per share), at IDM's election.

If the SID is terminated, amounts owing under the Facility can either be
repaid in cash or an equivalent amount by way of an issue of ordinary shares
in IDM (at $0.20 per share), at IDM's election.

Further details on the interim funding arrangements will be included in the
Scheme Booklet that will be provided to IDM Shareholders.

Advisors

IDM's financial advisor is Discovery Capital Partners and its legal advisor is
Johnson Winter Slattery. Blackstone's legal advisor is Steinepreis Paganin."

 

End of IDM International shareholders update

 

 

The Timetable and Next Steps for the Transaction as detailed in the Blackstone announcement re the IDM Merger are:

A Scheme Booklet containing the relevant information on the Scheme, including
the basis for the IDM Board's unanimous recommendation that IDM shareholders
vote in favour of the merger, an Independent Expert Report and details of the
Scheme, will be distributed to all IDM shareholders.

 

An indicative timetable for the proposed merger is provided below.

 

 Event                                          Date
 Announcement of the Scheme                     6 February 2025
 IDM provides draft Scheme Booklet to ASIC      19 March 2025
 First Court Hearing                            8 April 2025
 Scheme Booklet dispatched to IDM shareholders  10 April 2025
 Scheme Meeting                                 16 May 2025
 Second Court Hearing (Approval)                19 May 2025
 Effective Date                                 20 May 2025
 Implementation Date                            29 May 2025

The dates in this Timetable are indicative only and are subject to ASX's
approval of the Timetable in accordance with Appendix 7A of the ASX Listing
Rules and the availability of the Court.

 

For further information, please contact:

 Bezant Resources Plc

+44 (0) 20 3416 3695
 Colin Bird Executive Chairman
 Beaumont Cornish (Nominated Adviser)       +44 (0) 20 7628 3396

Roland Cornish / Asia Szusciak
 Novum Securities Limited (Joint Broker)

 Jon Belliss                                +44 (0) 20 7399 9400
 Shard Capital Partners LLP (Joint Broker)

 Damon Heath                                +44 (0) 20 7186 9952

Beaumont Cornish (Nominated Adviser)

Roland Cornish / Asia Szusciak

+44 (0) 20 7628 3396

Novum Securities Limited (Joint Broker)

Jon Belliss

 

+44 (0) 20 7399 9400

Shard Capital Partners LLP (Joint Broker)

Damon Heath

 

+44 (0) 20 7186 9952

 

or visit http://www.bezantresources.com (http://www.bezantresources.com)

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law pursuant to the Market
Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

 

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