REG - Bezant Resources PLC - Unaudited Interim Results
30/09/2024 07:00
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RNS Number : 1201G Bezant Resources PLC 30 September 2024
30 September 2024
Bezant Resources Plc
("Bezant" or the "Company")
Interim Results for the Six Months Ended 30 June 2024
Bezant (AIM: BZT), the copper-gold exploration and development company,
announces its unaudited interim results for the six months ended 30 June 2024.
Chairman's Statement
Dear Shareholders,
The focus of the first half of 2024 continues to be Southern Africa in
particular preparatory technical and commercial work in anticipation of the
granting of a mining licence in Namibia for our Hope and Gorob Project.
General economic and political environment: During the period of the interim
results the world has not materially changed but geopolitical tension has
probably worsened due to the ongoing impact of the Ukraine war and related
sanctions and escalation of conflicts in the Levant area of the Middle East.
This is a macro-economic situation which does not have a direct impact on the
Company as it does not have assets in or have business activities or suppliers
in either Ukraine. Russia or the Levant areas of the Middle East.
The financial world is seeing some inflation control and against this
optimism, we are seeing interest rates being lowered in the USA appearing to
be the most aggressive. The latest significant 50bp decrease may be too soon
and the next few months will test question. The stock markets have responded
favourably and are not anticipating a re-ignition of inflation. Should they
be wrong, then we might well see a perfect climate for commodities.
Financial highlights:
£487K loss after tax (unaudited 30 June 2023: £463K)
Approximately £156K cash at bank at the period end (audited 31 December 2023:
£560K).
Operational and corporate events in six months to 30 June 2024
In Namibia: The Hope and Gorob project in Namibia (in which Bezant holds a 70%
interest) is extremely well placed, since it is ready for production and has
the ability once fully explored, to achieve Tier 1 status. We are currently
awaiting a mining licence and have reached the point where all key
considerations have been addressed technically and financing offers are under
consideration in an advance form.
During the period, most technical factors have been considered and we are
convinced that at least the first five years ore supply can be provided from a
number of mini pits, which on the medium term can access high grade
underground material, providing a long-life operation. During the early
years, we will conduct an aggressive drilling programme, which has the
potential to upscale the operation to a larger operation after the provision
of a processing plant.
In Botswana: the Kanye battery manganese project is showing the potential to
be larger than originally anticipated and our previous work has demonstrated
that we can produce a battery suitable product from the deposit. We are
aware that Giyani Metals Corp announced in September 2024 the issue of a
mining licence for their K. Hill manganese project which is close to the Kanye
project area and we take this as a positive sign of the willingness of the
Botswana government to support manganese mining.
In Zambia: Our collaboration agreement with PCB Mining Ltd, which has gold
interest in the Northwest Zambia is progressing favourably and our geological
team and technical staff are assisting shareholders in their efforts to
restart the operation and conduct production-focused exploration.
Investment in Mankayan Project in Philippines: IDM International Ltd the
Australian holding company and Crescent Mining Development Corporation the
licence holder continue to make good progress with the Mankayan project in the
Philippines and we are hopeful that our 22.96% interest in IDM International
will be monetised in one form or another. The Mankayan project is well
drilled and well studied and has the potential to be a meaningful contributor
to the world's future copper demands.
Eureka Project Argentina: Our Eureka licences in Argentina have attracted
interest from a number of parties and we continue to hold site visits and
discussions with interested parties.
Funding: In March long term shareholder Sanderson Capital Partners Limited
agreed to an extension of our Facility with them to 31 July 2025 and we are
grateful for their continuing support.
Issue of Equity: No shares were issued during the period.
Operational and corporate post period end events
Post the period end we have on the following dates announced;
· 24 July 2024: the signing of a letter of intention for a
partnership for the delivery of a sustainable renewable solar energy supply
for the Hope & Gorob project;
· 27 August 2024: that geophysical surveying has extended the
potential target at the Kanye manganese project;
· 28 August 2024: the issue of an Environmental Clearance
Certificate for exploration licence EPL 717O valid through to 12 August 2027;
and
· 26 September 2024: the renewal of exploration licence EPL 6605
for two years to 28 August 2026.
Outlook: Copper is showing resilience in the USD9,000 range per tonne, with
resistance against fundamentals which are inescapable when making a case for
copper. The demand side is continuing despite a slow down in the Chinese
economy and the EV story slowing down because of structural problems. The
demand side is unstoppable, based on third world development bringing disposal
income and the emergence of India, which could be as rapid as China was
commencing some 20 years ago.
The supply side is dismal from whichever angle it is viewed and there is no
quick fix to this situation. What is surprising is the lack of recognition
by the Mining Industry of a seriously worsening problem. Mergers and
acquisitions do not create new copper. We believe the small and medium sized
new copper projects currently being planned or developed may assist with a
short-term solution but by no means solve it.
In terms of our own projects we continue to have several ongoing discussions
regarding finance and resource collaboration for their advancement and will
update shareholders as we have news to report.
I would like to thank my fellow directors and management in their untiring
efforts to enhance shareholder value in what must be the most difficult period
in the small natural resource sector.
Colin Bird
Executive Chairman
30 September 2024
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.
Group Statement of Profit and Loss
For the six months ended 30 June 2024
Notes Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2024 2024
£'000 £'000
CONTINUING OPERATIONS
Group revenue - -
- -
Cost of sales
Gross profit - -
Operating expenses (294) (386)
Share based payments 4 (53) -
(347) (386)
Group operating loss
Fair value adjustment (28) -
Finance Costs (64) (77)
Impairment of assets (48) -
Loss before taxation (487) (463)
- -
Taxation
Loss for the period (487) (463)
Loss per share (pence)
Basic and diluted from continuing operations 5 (0.004) (0.01)
Group Statement of Other Comprehensive Income
For the six months ended 30 June 2024
Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2024 2023
£'000 £'000
Other comprehensive income:
Loss for the period (487) (463)
Items that may be reclassified to profit or loss:
Foreign currency reserve movement (22) (179)
(509) (642)
Total comprehensive loss for the period
Group Statement of Changes in Equity
For the six months ended 30 June 2024
Share Capital Share Premium Other Reserves(1) Retained Losses Non-Controlling interest Total
£'000 £'000 £'000 £'000 Equity
£'000
Unaudited - six months ended 30 June 2024
Balance at 1 January 2024 2,205 41,431 4,127 (41,788) - 5,975
Current period loss - - - (487) - (487)
Foreign currency reserve - - (22) - - (22)
Total comprehensive loss for the period - - (22) (487) (509)
-
Proceeds from shares issued - - - - - -
Share issue costs - (51) - - - (51)
Share based payments -options - - 53 - - 53
Equity component of borrowings - - - - -
2,205 41,380 4,158 (42,275) 5,468
Balance at 30 June 2024 -
Share Capital Share Premium Other Reserves(1) Retained Losses Non-Controlling interest Total
£'000 £'000 £'000 £'000 Equity
£'000
Unaudited - six months ended 30 June 2023
Balance at 1 January 2023 2,079 39,507 3,672 (35,551) - 9,707
Current period loss - - - (463) - (463)
Foreign currency reserve - - (179) - - (179)
Total comprehensive loss for the period - - (179) (463) (642)
-
Proceeds from shares issued 37 713 - - - 750
Shares issued - in lieu of fees - (81) 21 - - (60)
Warrants exercised 14 422 - - - 436
Share options granted - - 272 - - 272
2,130 40,561 3,786 (36,014) 10,463
Balance at 30 June 2023 -
(1) Other reserves is made up of the share-based payment and foreign exchange
reserve.
Group Balance Sheet
As at 30 June 2024
Unaudited Audited
30 31
June December
2024 2023
Notes £'000 £'000
ASSETS
Non-current assets
Plant and equipment 6 - -
Investments 7 2,122 2,150
Exploration and evaluation assets 8 4,114 3,899
Total non-current assets 6,236 6,049
Current assets
Trade and other receivables 42 224
Cash and cash equivalents 156 560
Total current assets 198 784
TOTAL ASSETS 6,434 6,833
LIABILITIES
Current liabilities
Trade and other payables 376 332
Borrowings 9 590 526
Total current liabilities 966 858
5,468 5,975
NET ASSETS
EQUITY
Share capital 10 2,205 2,205
Share premium 10 41,380 41,431
Share-based payment reserve 1,529 1,476
Foreign exchange reserve 596 618
Merger reserve 1,831 1,831
Other reserves 202 202
Retained losses (42,275) (41,788)
5,468 5,975
TOTAL EQUITY
Group Statement of Cash Flows
For the six months ended 30 June 2024
Unaudited Unaudited
Six months Six months
ended ended
30 June 30 June
2024 2023
Notes £'000 £'000
Net cash outflow from operating activities 11 (90) (246)
Cash flows from/(used) in investing activities
Deferred exploration expenditure (263) (149)
(263) (149)
Cash flows from financing activities
Costs re issuance of ordinary shares (51) 703
Borrowings - -
(51) 703
Increase/(decrease) in cash (404) 308
Cash and cash equivalents at beginning of period 560 57
Foreign exchange movement - -
Cash and cash equivalents at end of period 156 365
Notes to the interim financial information
For the six months ended 30 June 2024
1. Basis of preparation
The unaudited interim financial information set out above, which incorporates
the financial information of the Company and its subsidiary undertakings (the
"Group"), has been prepared using the historical cost convention and in
accordance with International Financial Reporting Standards ("IFRS"),
including IFRS 6 'Exploration for and Evaluation of Mineral Resources', as
adopted by the European Union ("EU") and with those parts of the Companies Act
2006 applicable to companies reporting under IFRS.
These interim results for the six months ended 30 June 2024 are unaudited and
do not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. The financial statements for the year ended 31 December
2023 have been delivered to the Registrar of Companies and the auditors'
report on those financial statements was unqualified and contained a material
uncertainty pertaining to going concern.
Going concern basis of accounting
The Group made a loss from all operations for the six months ended 30 June
2024 after tax of £0.49 million (2023: £0.46 million), and had negative
cash flows from operations and is currently not generating revenues. Cash and
cash equivalents were £156K as at 30 June 2024 (December 2023 £560K).
On 5 March 2024 the Company announced that the repayment date for the
£700,000 drawdowns under the Sanderson Capital Facility Agreement had been
extended to 31 July 2025. An operating loss is expected in the year
subsequent to the date of these accounts and the Company will need to raise
funding to provide additional working capital to finance its ongoing
activities. Management has successfully raised money in the past, but there
is no guarantee that adequate funds will be available when needed in the
future.
Based on the Board's assessment that the Company will be able to raise
additional funds, as and when required, to meet its working capital and
capital expenditure requirements, the Board have concluded that they have a
reasonable expectation that the Group can continue in operational existence
for the foreseeable future. For these reasons the Group continues to adopt the
going concern basis in preparing the annual report and financial statements.
There is a material uncertainty related to the conditions above that may cast
significant doubt on the Group's ability to continue as a going concern and
therefore the Group may be unable to realize its assets and discharge its
liabilities in the normal course of business.
The financial report does not include any adjustments relating to the
recoverability and classification of recorded asset amounts or liabilities
that might be necessary should the entity not continue as a going concern.
2 Significant accounting judgments, estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined
based on estimates and assumptions of future events. The key estimates and
assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of certain assets and liabilities within the next annual
reporting year are:
Share-based payment transactions:
The Group measures the cost of equity-settled transactions with directors,
consultants and employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is
determined by using a Black and Scholes model which takes into account
expected share volatility, strike price, term of the option and the dividend
policy.
Impairment of investments, options and deferred exploration expenditure:
The Group determines whether investments (including those acquired during the
period), options and deferred exploration expenditure are impaired when
indicators, based on facts and circumstances, suggest that the carrying amount
may exceed its recoverable amount. Such indicators include the point at which
a determination is made as to whether or not commercial mining reserves exist
in the subsidiary or associate in which the investment is held or whether
exploration expenditure capitalised is recoverable by way of future
exploitation or sale, obviously pending completion of the exploration
activities associated with any specific project in each segment.
Fair value of assets and liabilities acquired on acquisition of subsidiaries
The Group determines the fair value of assets and liabilities acquired on
acquisition of subsidiaries by reference to the carrying value at the date of
acquisition and by reference to exploration activities undertaken and/or
information that the Directors become aware of post acquisition (note 8).
Investments at fair value through profit and loss ('Equity investments')
Equity investments are initially measured at cost, including transaction
costs. At each reporting date, the fair value is assessed and any resultant
gains and losses are included directly in the Consolidated Statement of Profit
and Loss under IFRS 9.
Valuation of Equity Instruments Convertible Loan (Borrowings)
Convertible instruments can be complex, containing a number of features which
can have a significant impact on the accounting under IFRS 9 Financial
Instruments and IAS 32 Presentation of Financial Instruments. The Company
determined that the £700,000 convertible note drawn down announced on 30 June
2022 ("Original Facility") (note 9) was an equity instrument as the conversion
feature results in the conversion of a fixed amount of stated principal into a
fixed number of shares, it satisfies the 'fixed for fixed' criterion and,
therefore, it is classified as an equity instrument which requires the
valuation of the liability component and the equity conversion component.
The fair value of the liability component, included in current borrowings, at
inception was calculated using a market interest rate for an equivalent
instrument without conversion option. The discount rate applied was 25%.
The Company determined that;
i) the change in terms of the Original Facility announced on
15 June 2023 being that the repayment date was extended to 23 December 2024
and the conversion price was reduced to 0.08 pence per share (the "Modified
Facility") were in accordance with IFRS 9 substantially different; and
ii) the Modified Facility was an equity instrument as the
conversion feature results in the conversion of a fixed amount of stated
principal into a fixed number of shares, it satisfies the 'fixed for fixed'
criterion and, therefore, it is classified as an equity instrument which
requires the valuation of the liability component and the equity conversion
component. The fair value of the liability component, included in current
borrowings, at inception was calculated using a market interest rate for an
equivalent instrument without conversion option. The discount rate applied was
25%.
On 5 March 2024 the Company announced that by an agreement dated 4 March 2024
it had agreed with the Lender to extend the repayment date for the £700,000
drawn down under the Facility to 31 July 2025 and that the £700,000 drawn
down is now convertible by the Lender at the fixed price of 0.06 pence per
share (the "New Conversion Price") (the "Extended Facility") .
The Company determined that the Extended Facility was in accordance with IFRS
9 not substantially different from the terms of the Modified Facility and that
therefore the Modified Facility has not been deemed repaid when the Extended
Facility terms were agreed.
3. Segment reporting
For the purposes of segmental information, the operations of the Group are
focused in geographical segments, namely the UK, Argentina, Namibia, and
Botswana, and comprise one class of business: the exploration, evaluation and
development of mineral resources. The UK is used for the administration of the
Group and includes equity investments in non-group companies.
The Group's loss before tax arose from its operations in the UK, Argentina
Namibia and Botswana.
For the six months ended 30 June 2024 - unaudited
UK Argentina Namibia Botswana Total
£'000 £'000 £'000
Consolidated loss before tax (451) (36) (487)
- -
Included in the consolidated loss before tax are the following
income/(expense) items:
Foreign currency gain - - - - -
Total Assets 3,159 11 2,962 1,141 4,114
Total Liabilities (854) (112) - - (966)
For the six months ended 30 June 2023 - unaudited
UK Argentina Namibia Botswana Total
£'000 £'000 £'000
Consolidated loss before tax (418) (45) (463)
- -
Included in the consolidated loss before tax are the following
income/(expense) items:
Foreign currency gain - - - - -
Total Assets 2,663 4,867 2,536 1,052 11,118
Total Liabilities (601) (54) - - (655)
4. Share based payments
6 months ended 30 June 2024 6 months ended 30 June 2023
£'000 £'000
Share option expense - Directors 20 -
Share option expense - Management 33 -
53 -
5. Loss per share
The basic and diluted loss per share for the six months ended 30 June 2024 was
0.004 pence per shares (2023 0.01 pence) and has been calculated using the
loss attributable to equity holders of the Company for the six months ended
30 June 2024 of £487,000 (2023: £463,000). The basic and diluted loss per
share was calculated using a weighted average number of shares in issue of
11,380,918,869 (2023: 6,139,789,530).
The use of the weighted average number of shares in issue in the period
recognises the variations in the number of shares throughout the period and is
in accordance with IAS 33 as is the fact that the diluted earnings per share
should not show a more favourable position than the basic earnings per share.
6. Plant and equipment
Unaudited Audited
30 June 2024 31
December
2023
£'000 £'000
6.1 Cost
Balance at beginning of period - 67
Disposal - write off of assets - (67)
At end of period - -
6.2 Depreciation
Balance at beginning of period - 65
Charge for the period - 1
Disposal - write off of assets (66)
At end of period - -
- 2
Net book value at end of period
7. Investments
Unaudited Audited
30 31
June December
2024 2023
£'000 £'000
Investments under fair value through profit and loss (note 7.1) 2,044 2,072
Debt instruments under fair value through profit and loss (note 7.2) 78 78
2,122 2,150
7.1 Investments
On 13 September 2021 the Company, entered into a conditional agreement with
IDM Mankayan Pty Ltd ("IDM Mankayan"), a company incorporated in Australia, to
take the Mankayan Project in the Philippines forward (the "IDM Mankayan
Agreement"). The IDM Mankayan Agreement completed on 20 October 2021 and the
Company paid A$90,000 (GBP49K) to IDM Mankayan to acquire 44 IDM Mankayan
shares (the "IDM Mankayan Investment") of the 160 shares issued by IDM
Mankayan but has no management control over or right to appoint directors of
IDM Mankayan which is why the IDM Mankayan Investment is held as an equity
investment under IFRS 9.
On 26 October 2022 the Company entered into a conditional share purchase
agreement with IDM International Ltd ("IDM International") the parent company
of IDM Mankayan to sell the IDM Mankayan Investment for 19,381,054 fully paid
ordinary shares of IDM International (the "IDM International SPA"). The IDM
International SPA was conditional on approval of the IDM International SPA by
the shareholders of IDM International and completed on 27 March 2023.
The Mankayan project's MPSA was originally issued for a standard 25 year
period, which expired on 11 November 2021, and as announced by the Company on
18 March 2022 has been renewed for a second 25 year term with effect from 12
November 2021.
On 26 October 2022 the Company entered into a convertible loan note agreement
with IDM International to invest A$137,500 (GBP 78K) in IDM International to
acquire 137,500 notes (the "IDM International Convertible Loan Note
Investment"). The Company has the right to convert the whole but not part of
the face value of each Note into IDM International Shares at A$0.20 at any
time (and as many times) prior to the Maturity Date which is 11 November 2026.
As at 30 June 2024, the fair value of the debt instrument was £78k and no
unrealised gain/loss was recognised.
Unaudited Audited
30 June 2024 31 December 2023
£'000 £'000
Investments under fair value through profit and loss
Unquoted investments beginning of period 2,072 2,182
(Decrease) / Increase in fair value during year(1) (28) (110)
Unquoted investments at end of period
2,044 2,072
(1) 19,381,054 shares valued at AUD$0.20 (£0.105) being the share
subscription price at which at which third parties subscribed for shares in
IDM International in 2023 and 2024.
Investments are initially valued at cost. At each reporting date these
investments are measured at fair value with any gains or losses recognised
through the Consolidated Statement of Profit and Loss. In the six months to 30
June 2024, the Group and Company had an unrealised loss of £28,000 (YE 31
December 2023 loss of £110,000).
This along with other valuations are estimates based on the Directors'
assessment of the performance of the underlying investment and reliable
information such as recent fundraising. There is however inherent uncertainty
when valuing private companies such as these in the natural resources sector.
(1) 19,381,054 shares valued at AUD$0.20 (£0.105) being the share
subscription price at which at which third parties subscribed for shares in
IDM International in 2023 and 2024.
Investments are initially valued at cost. At each reporting date these
investments are measured at fair value with any gains or losses recognised
through the Consolidated Statement of Profit and Loss. In the six months to 30
June 2024, the Group and Company had an unrealised loss of £28,000 (YE 31
December 2023 loss of £110,000).
This along with other valuations are estimates based on the Directors'
assessment of the performance of the underlying investment and reliable
information such as recent fundraising. There is however inherent uncertainty
when valuing private companies such as these in the natural resources sector.
8. Exploration and evaluation assets
Unaudited Audited
30 31
June December
2024 2023
£'000 £'000
Balance at beginning of period 3,899 8,398
Acquisitions during period
Exploration expenditure 263 363
Effect of foreign currency fluctuation impairment (48) (88)
Impairment (note 8.1) - (4774)
4,114 3,899
Carried forward at end of period
8.1 Exploration Assets
Argentina
The amount of capitalised exploration and evaluation expenditure relates to 12
licences comprising the Eureka Project and are located in north-west Jujuy
near to the Argentine border with Bolivia and are formally known as Mina
Eureka, Mina Eureka II, Mina Gino I, Mina Gino II, Mina Mason I, Mina Mason
II, Mina Julio I, Mina Julio II, Mina Paul I, Mina Paul II, Mina Sur Eureka
and Mina Cabereria Sur, covering, in aggregate, an area in excess of
approximately 5,500 hectares and accessible via a series of gravel roads. All
licences remain valid.
Anew Environmental Impact Assessment (EIA) was presented in 2021 and approved
in February 2023 in respect of Mina Eureka, Mina Gino I, Mina Gino II,
Mina Mason I, Mina Mason II, Mina Julio I, Mina Julio II, Mina Paul I, Mina
Paul II, being the 9 northern most licences which are the intended focus of a
future exploration programme. The new EIA approval covers environmental
monitoring and a drill program encompassing 9 drill holes of 200-300 metres
each. The Company engaged an environmental consultant to conduct the
environmental monitoring in Q3 2023 and is seeking a joint venture partner to
work with in relation to an exploration drilling program.
Notwithstanding the absence of new exploration activities on-site during the
period the directors, still intend to focus on finding a joint venture partner
for the project. However having assessed the current macroeconomic challenges
faced by the Argentina economy the Board decided to take the prudent approach
of making a full impairment provision of £4,774,050 against the value of its
Argentinian exploration and evaluation asset in the accounts for the year
ended 31 December 2023.
8.2 Namibia
On 14 August 2020 the Company completed the acquisition of 100% of Virgo
Resources Ltd and its interests in the Hope Copper-Gold Project in Namibia
which comprise i) 70% of Hope and Go
rob Mining Pty Ltd incorporated in Namibia which owns EPL5796, and ii) 80% of
Hope Namibia Mineral Exploration Pty Ltd Incorporated in Namibia which owns
EPL6605 and iEPL7170. The balance of the project is held by local Namibian
partners.
JORC Resource: On 27 October 2023 the Company announced an updated gross **
Mineral Resource Estimate (MRE) has been completed by Addison Mining Services
Ltd., an independent consultancy based in the United Kingdom and is reported
in accordance with the JORC Code (2012). Resources are of Indicated and
Inferred categories and include:
· A Total Mineral Resource of 15 million tonnes gross at 1.2 % Cu
for 190 thousand tonnes of Cu estimated across the Hope, Gorob Vendome and
Anomaly deposits and comprising:
o Total Indicated Resources of 1.24 million tonnes at 1.6% Cu and 0.4 g/t Au
at the Hope deposit.
o Total Inferred Resources of approximately 14 million tonnes at 1.2% Cu
across the Hope, Gorob, Vendome and Anomaly deposits, including approximately
3million tonnes at 1.7% Cu and 0.4 g/t Au at Hope.
**Gross representing 100% estimated Resources - Bezant has a 70% interest in
the Hope and Gorob Project.
In its announcement on 27 October 2023 which provided details of the updated
MRE referenced above it was highlighted that;
· The resource estimation has ignored gold content for all
prospects other than the Hope target on the basis that many historic boreholes
(pre-dating Bezant's involvement) were not assayed for gold and as such
Addison could not include gold in the resource compilation. Based on the
Bezant drilling programme Addison concur that it would not be unreasonable to
anticipate average grades of 0.2 to 0.4 g/t Au. The Company are considering
aprogramme to twin certain holes to give the independent consultant the data
to include additional gold in the resource estimate.
· The MRE identified significant potential for open pit extraction
with an open pit resource of 2.4 million tonnes and the potential, assuming
favourable Cu grades from further drilling, of increasing the size of the
practically open pittable resource for further 700,000 to 1 million tonnes
postulating an open pit that could support five years mine life at an annual
rate of 500,000 tonnes per year.
· The MRE identified that deeper parts of the orebody had the
potential to be mined underground, utilising a former concrete lined shaft
with additional access from the base of the open pit.
· Total tonnes of contained copper in Mineral Resource Estimate of
approximately 190,000 tonnes. AMS postulate that this could be significantly
increased by the drilling of untested areas where mineralization is projected
and a drilling programme targeted toward increased gold credit, thereby
increasing the overall copper equivalent grade.
· Addison has noted that there is significant exploration potential
with extensions to the existing open pit resources being extremely likely and
only omitted from the Resource Estimate due to a historic low drill density
that precludes conversion to a JORC Resource. Although there are no
guarantees, extension drilling could result in further addition to the updated
Mineral Resource.
· The Addsion MRE considers reasonably assumed metallurgical inputs
from historic test work and prior studies. Any new metallurgical test work
will inform future MRE updates and technical studies.
The Company has also since the acquisition of the Namibian projects in 2020
made several positive announcements which support the Company's confidence in
the Hope Copper-Gold Project. On 9 August 2022 the Company announcement
that; the Company has submitted a mining licence application for the
Hope-Gorob copper-gold project area on EPL5796 to the Namibian authorities;
the Mining Licence application is based on an updated Scoping Study completed
in May 2022 by external consultants incorporating historic mineral resource
estimates which did not yet include additional near-surface copper-gold
resources generated by the Company's shallow drill programme completed in
early 2022; the Scoping Study indicated that the potential for the development
of a surface and underground copper mine exists at the Hope and Gorob deposits
and recommended completion of the additional work required for optimisation of
mine development plans including the work necessary to obtain granting of
environmental permits and also recommended that further exploration work
continues to fully define resource potential at these deposits; the 2022
shallow drilling has continued to extend the strike and up-dip extension of
mineralisation at both the Hope and Vendome prospects. The new drillholes have
added more than 1.5km to the mineralised strike length, with the potential to
add significantly to the previously estimated mineral resource; and continuous
copper and gold mineralisation has been intersected in drill intercepts over
substantial downhole widths of up to 29.74m.
The Namibian authorities have a rigorous process for reviewing mining
applications regardless of the size of the proposed mining operations and the
Company's management have engaged with and met with senior officials at the
Ministry of Mines and Energy on several occasions to provide the information
requested and present the Company's plans as part of the ongoing application
review process and in anticipation of the issue of the mining licence the
Company has been conducting various technical and other studies On 13 June
2024 the company provide an update on the Hope & Gorob Copper - Gold
Project in Namibia which confirmed;
i) letters of preparedness have been received from the main
contractors responsible for future mining, processing plant construction and
concentrate haulage and Letters of Intent and offers for financing of an
off-grid hybrid renewable power supply for the Project; and
ii) that whilst the mining licence is pending, the Company
has progressed several other technical aspects of the Project including the
finalisation of infrastructure, mine and pre-concentrator final designs,
audit and costing for the repurposing of an existing flotation plant located
within trucking distance of Hope & Gorob to process pre-concentrate from
the new mine and the adoption of a renewable energy solution building on
existing environmental initiatives included in plant design. Other
environmental initiatives include, amongst others, minimising water
consumption on site through the use of dry ore sorting as a pre-concentration
step.
Highlights
· A leading contracting group has provided a final set of
competitive unit costs for mining, ore haulage to the ore sorting plant,
haulage of pre-concentrate and the transfer of a final concentrate to Walvis
Bay for export. Individual unit costs are in line with costs used in financial
modelling.
· An international engineering group has confirmed its' readiness
for the construction and installation of the front-end crushing, ore sorting
and conveying circuits. With offices and workshops located in Swakopmund, the
group is well-placed to complete the project and provide continuous support
and maintenance services.
· Preferred engineering, construction, and project management
("EPCM") supplier has been identified and proposal received for the upgrading
and repurposing of the existing available flotation plant and Tailings Storage
Facility ("TSF")
· Technical design and costing of a hybrid power supply solution
including renewables for the mine site has been completed and discussions are
underway to finalise a Power Purchase Agreement ("PPA") for the installation
of the bulk power supply.
Post the period end the Company has announced the signing of a letter of
intention for a partnership for the delivery of a sustainable renewable solar
energy supply for the Hope & Gorob project the issue of an Environmental
Clearance Certificate for exploration licence EPL 7170 valid through to 12
August 2027; and the renewal of exploration licence EPL 6605 for two years to
28 August 2026. As previously announced negotiations are continuing with
specific reference to the acquisition of existing infrastructure expected to
significantly reduce upfront capital expenditure and reduce lead time to
production at the Hope & Gorob project.
Post-acquisition there have been no indications that any impairment provisions
are required in relation to the carrying value of the Hope Copper-Gold
Project. The capitalised cost at 30 June 2024 was £2,962K (December 2023
£2,790K).
8.3 Botswana
On 12 February 2021 the Company further to its announcement on 22 December
2020 announced the completion of the acquisition of 100% of Metrock Resources
Ltd ("Metrock") and its manganese mineral exploration licences in Southern
Botswana comprising the Kanye Manganese Project (the "Kanye Manganese
Project"). The Kanye Manganese Project i) comprises a 1,668 sq. km land
package with 125 km of potential on trend manganese mineralisation across the
licences ii) has historical trenching results have yielded in the case on one
prospect of between 53% and 74% manganese oxide ("MnO"), and iii) project area
is near the ground of a TSX listed public company that has a preliminary
economic assessment showing high rates of return based on a MnO grade of 27.3.
The Kanye Manganese Project comprises a collection of six prospecting
licenses, namely PLs 129/2019, 421/2018, 423/2018, 424/2018, PL 425/2018 and
238/2021 (the "Project Licences"), located in south-central Botswana south of
the town of Jwaneng and west of the town of Kanye and 150 km by road from the
capital Gaborone. The licenses cover a total area of 1,833 sq. km and provide
the holder with the right to prospect for Metals. Five licenses are held by
Cypress Sources Pty Ltd, a 100% owned subsidiary of Coastal Resources Pty Ltd
which in turn is 100% owned by Metrock Resources Limited, itself a 100% owned
subsidiary of Bezant Resources. The fifth licence PL 129/2019 s held by
Coastal Minerals Pty Ltd which is 100% owned by Coastal Resources Pty Ltd. the
Kanye Manganese Project is close to the K-Hill manganese deposit where a TSX
listed public company reports a PEA based on a life of project MnO grade of
15.2% yielding a NPV (8%) of US$984m and an IRR of 29.4% - a full feasibility
study was under way as of July 2023.
During 2023 on 9 February 2023 the Company announced the results of its maiden
drilling programme at the Kanye Manganese project the highlights of which
were:
· Maiden Kanye drilling programme - 11 mainly shallow, angled RC
holes totaling 682m at Moshaneng prospect as well as one short diamond drill
hole at Loltware prospect.
· Moshaneng drilling intersected a zone of flat-lying detrital,
supergene manganese-iron mineralisation which appears to infill an irregular
karst surface over a minimum strike length of 400m.
· Among assay intervals encountered were:
a. 6m @ 28.64% MnO from 6m depth in hole MS-RC-12
i. Including 4m @ 35.38% MnO from 8m depth
b. 3m @ 21.85% MnO from 4m depth in hole MS-RC-06
c. 3m @ 21.20% MnO from 2m depth in hole MS-RC-07
· Potential for at least another 100m of strike extension to the
southeast of holes MS-RC-07 and MS-RC-012 would extend the total strike length
to a minimum of 500m
· Less than 25% of the more than 2km potential extent of the target
defined by soil geochemistry has been drill tested
· Grades compare favourably with reported grades on neighbouring
more advanced manganese projects and therefore the Kanye project warrants
detailed evaluation and drilling with a view to establishing the mineral
resource potential
Drilling at Loltware encountered encouraging manganese enhancement in core,
warranting further investigation.
On 24 July 2023 and 6 September 2023 the Company announced the results of a
two phase metallurgical testing programme undertaken by Wardell Armstrong
International, the highlights of which were:
· Phase 2 work followed on from previous metallurgical testing
reported in July 2023, aiming to optimise manganese recovery from the
'Moshaneng' sample whilst minimising the reagent consumption rates to improve
process economics.
· Sulphuric acid leaching optimisation testwork found that
manganese recoveries of 99.5% were achievable at moderate process conditions,
specifically 60°C leaching temperature, 300kg/t of sulphur dioxide addition,
and 284kg/t of sulphuric acid consumption.
· Grind size had minimal influence on the final manganese recovery
with 88.0% and 88.3% manganese recovery achieved for feed material particle
size distributions of 80% passing 200µm and 80% passing 150µm respectively.
· Leaching temperature had negligible effect on the final manganese
recovery with 88.0% and 89.5% manganese recovery achieved for leach
temperatures of 60°C and 90°C respectively.
· Leach kinetics of manganese recovery were dependent on the
sulphur dioxide addition rate. Sulphur dioxide introduced incrementally,
demonstrated a staged manganese recovery.
· A Benchmark Project Review was carried out on three recent
manganese projects which were identified as having a similar geographical
location and/or producing final products of a similar specification.
a. Giyani Metals K.Hill Project Botswana;
b. Manganese X Energy Corp. Battery Hill Project Canada;
c. Euro Manganese Inc. Chvaletice Project Czech Republic;
· The Kanye manganese deposit demonstrates an excellent overall
manganese recovery using moderate leaching conditions compared with
benchmarked projects.
· The Kanye deposit composite showed a negligible increase in
manganese leaching performance at elevated temperatures, which is a favourable
outcome from an OPEX perspective.
Further metallurgical test work will be considered at a later stage of project
advancement.
Post the period end on 27 August 2024 the Company announced information on the
positive outcome of geophysical surveying during August 2024 at its 100% owned
Kanye manganese project in Botswana which was planned to assist in extending
the potential footprint of the deposit.
Highlights:
· IP/resistivity geophysical surveying has traced near surface
areas of high conductivity/low resistivity which could reflect manganiferous
mineralisation for about 900m to the NW of the previously exposed manganese
occurrence in the Moshaneng borrow pit, making 1.4km of potential target
strike extent in total.
· The geophysical anomaly extends up to 300m width in places,
double that in the area already drill tested, and remains open further to the
NW beyond the limit of the survey.
· Follow-up RC drilling will be planned to confirm possible mineral
continuity and grade. If mineralisation of economic interest is found by
drilling then an extension to the IP survey is recommended to follow the
strike further.
Post-acquisition there have been no indications that any impairment provisions
are required in relation to the carrying value of the Kanye Manganese Project.
The capitalised cost at 30 June 2024 was £1,141K (December 2023 £1,109K)
A new Environmental Impact Assessment (EIA) was presented in 2021 and approved
in February 2023 in respect of Mina Eureka, Mina Gino I, Mina Gino II,
Mina Mason I, Mina Mason II, Mina Julio I, Mina Julio II, Mina Paul I, Mina
Paul II, being the 9 northern most licences which are the intended focus of a
future exploration programme. The new EIA approval covers environmental
monitoring and a drill program encompassing 9 drill holes of 200-300 metres
each. The Company engaged an environmental consultant to conduct the
environmental monitoring in Q3 2023 and is seeking a joint venture partner to
work with in relation to an exploration drilling program.
Notwithstanding the absence of new exploration activities on-site during the
period the directors, still intend to focus on finding a joint venture partner
for the project. However having assessed the current macroeconomic challenges
faced by the Argentina economy the Board decided to take the prudent approach
of making a full impairment provision of £4,774,050 against the value of its
Argentinian exploration and evaluation asset in the accounts for the year
ended 31 December 2023.
8.2 Namibia
On 14 August 2020 the Company completed the acquisition of 100% of Virgo
Resources Ltd and its interests in the Hope Copper-Gold Project in Namibia
which comprise i) 70% of Hope and Go
rob Mining Pty Ltd incorporated in Namibia which owns EPL5796, and ii) 80% of
Hope Namibia Mineral Exploration Pty Ltd Incorporated in Namibia which owns
EPL6605 and iEPL7170. The balance of the project is held by local Namibian
partners.
JORC Resource: On 27 October 2023 the Company announced an updated gross **
Mineral Resource Estimate (MRE) has been completed by Addison Mining Services
Ltd., an independent consultancy based in the United Kingdom and is reported
in accordance with the JORC Code (2012). Resources are of Indicated and
Inferred categories and include:
· A Total Mineral Resource of 15 million tonnes gross at 1.2 % Cu
for 190 thousand tonnes of Cu estimated across the Hope, Gorob Vendome and
Anomaly deposits and comprising:
o Total Indicated Resources of 1.24 million tonnes at 1.6% Cu and 0.4 g/t Au
at the Hope deposit.
o Total Inferred Resources of approximately 14 million tonnes at 1.2% Cu
across the Hope, Gorob, Vendome and Anomaly deposits, including approximately
3 million tonnes at 1.7% Cu and 0.4 g/t Au at Hope.
**Gross representing 100% estimated Resources - Bezant has a 70% interest in
the Hope and Gorob Project.
In its announcement on 27 October 2023 which provided details of the updated
MRE referenced above it was highlighted that;
· The resource estimation has ignored gold content for all
prospects other than the Hope target on the basis that many historic boreholes
(pre-dating Bezant's involvement) were not assayed for gold and as such
Addison could not include gold in the resource compilation. Based on the
Bezant drilling programme Addison concur that it would not be unreasonable to
anticipate average grades of 0.2 to 0.4 g/t Au. The Company are considering
a programme to twin certain holes to give the independent consultant the data
to include additional gold in the resource estimate.
· The MRE identified significant potential for open pit extraction
with an open pit resource of 2.4 million tonnes and the potential, assuming
favourable Cu grades from further drilling, of increasing the size of the
practically open pittable resource for further 700,000 to 1 million tonnes
postulating an open pit that could support five years mine life at an annual
rate of 500,000 tonnes per year.
· The MRE identified that deeper parts of the orebody had the
potential to be mined underground, utilising a former concrete lined shaft
with additional access from the base of the open pit.
· Total tonnes of contained copper in Mineral Resource Estimate of
approximately 190,000 tonnes. AMS postulate that this could be significantly
increased by the drilling of untested areas where mineralization is projected
and a drilling programme targeted toward increased gold credit, thereby
increasing the overall copper equivalent grade.
· Addison has noted that there is significant exploration potential
with extensions to the existing open pit resources being extremely likely and
only omitted from the Resource Estimate due to a historic low drill density
that precludes conversion to a JORC Resource. Although there are no
guarantees, extension drilling could result in further addition to the updated
Mineral Resource.
· The Addsion MRE considers reasonably assumed metallurgical inputs
from historic test work and prior studies. Any new metallurgical test work
will inform future MRE updates and technical studies.
The Company has also since the acquisition of the Namibian projects in 2020
made several positive announcements which support the Company's confidence in
the Hope Copper-Gold Project. On 9 August 2022 the Company announcement
that; the Company has submitted a mining licence application for the
Hope-Gorob copper-gold project area on EPL5796 to the Namibian authorities;
the Mining Licence application is based on an updated Scoping Study completed
in May 2022 by external consultants incorporating historic mineral resource
estimates which did not yet include additional near-surface copper-gold
resources generated by the Company's shallow drill programme completed in
early 2022; the Scoping Study indicated that the potential for the development
of a surface and underground copper mine exists at the Hope and Gorob deposits
and recommended completion of the additional work required for optimisation of
mine development plans including the work necessary to obtain granting of
environmental permits and also recommended that further exploration work
continues to fully define resource potential at these deposits; the 2022
shallow drilling has continued to extend the strike and up-dip extension of
mineralisation at both the Hope and Vendome prospects. The new drillholes have
added more than 1.5km to the mineralised strike length, with the potential to
add significantly to the previously estimated mineral resource; and continuous
copper and gold mineralisation has been intersected in drill intercepts over
substantial downhole widths of up to 29.74m.
The Namibian authorities have a rigorous process for reviewing mining
applications regardless of the size of the proposed mining operations and the
Company's management have engaged with and met with senior officials at the
Ministry of Mines and Energy on several occasions to provide the information
requested and present the Company's plans as part of the ongoing application
review process and in anticipation of the issue of the mining licence the
Company has been conducting various technical and other studies On 13 June
2024 the company provide an update on the Hope & Gorob Copper - Gold
Project in Namibia which confirmed;
i) letters of preparedness have been received from the main
contractors responsible for future mining, processing plant construction and
concentrate haulage and Letters of Intent and offers for financing of an
off-grid hybrid renewable power supply for the Project; and
ii) that whilst the mining licence is pending, the Company
has progressed several other technical aspects of the Project including the
finalisation of infrastructure, mine and pre-concentrator final designs,
audit and costing for the repurposing of an existing flotation plant located
within trucking distance of Hope & Gorob to process pre-concentrate from
the new mine and the adoption of a renewable energy solution building on
existing environmental initiatives included in plant design. Other
environmental initiatives include, amongst others, minimising water
consumption on site through the use of dry ore sorting as a pre-concentration
step.
Highlights
· A leading contracting group has provided a final set of
competitive unit costs for mining, ore haulage to the ore sorting plant,
haulage of pre-concentrate and the transfer of a final concentrate to Walvis
Bay for export. Individual unit costs are in line with costs used in financial
modelling.
· An international engineering group has confirmed its' readiness
for the construction and installation of the front-end crushing, ore sorting
and conveying circuits. With offices and workshops located in Swakopmund, the
group is well-placed to complete the project and provide continuous support
and maintenance services.
· Preferred engineering, construction, and project management
("EPCM") supplier has been identified and proposal received for the upgrading
and repurposing of the existing available flotation plant and Tailings Storage
Facility ("TSF")
· Technical design and costing of a hybrid power supply solution
including renewables for the mine site has been completed and discussions are
underway to finalise a Power Purchase Agreement ("PPA") for the installation
of the bulk power supply.
Post the period end the Company has announced the signing of a letter of
intention for a partnership for the delivery of a sustainable renewable solar
energy supply for the Hope & Gorob project the issue of an Environmental
Clearance Certificate for exploration licence EPL 7170 valid through to 12
August 2027; and the renewal of exploration licence EPL 6605 for two years to
28 August 2026. As previously announced negotiations are continuing with
specific reference to the acquisition of existing infrastructure expected to
significantly reduce upfront capital expenditure and reduce lead time to
production at the Hope & Gorob project.
Post-acquisition there have been no indications that any impairment provisions
are required in relation to the carrying value of the Hope Copper-Gold
Project. The capitalised cost at 30 June 2024 was £2,962K (December 2023
£2,790K).
8.3 Botswana
On 12 February 2021 the Company further to its announcement on 22 December
2020 announced the completion of the acquisition of 100% of Metrock Resources
Ltd ("Metrock") and its manganese mineral exploration licences in Southern
Botswana comprising the Kanye Manganese Project (the "Kanye Manganese
Project"). The Kanye Manganese Project i) comprises a 1,668 sq. km land
package with 125 km of potential on trend manganese mineralisation across the
licences ii) has historical trenching results have yielded in the case on one
prospect of between 53% and 74% manganese oxide ("MnO"), and iii) project area
is near the ground of a TSX listed public company that has a preliminary
economic assessment showing high rates of return based on a MnO grade of 27.3.
The Kanye Manganese Project comprises a collection of six prospecting
licenses, namely PLs 129/2019, 421/2018, 423/2018, 424/2018, PL 425/2018 and
238/2021 (the "Project Licences"), located in south-central Botswana south of
the town of Jwaneng and west of the town of Kanye and 150 km by road from the
capital Gaborone. The licenses cover a total area of 1,833 sq. km and provide
the holder with the right to prospect for Metals. Five licenses are held by
Cypress Sources Pty Ltd, a 100% owned subsidiary of Coastal Resources Pty Ltd
which in turn is 100% owned by Metrock Resources Limited, itself a 100% owned
subsidiary of Bezant Resources. The fifth licence PL 129/2019 s held by
Coastal Minerals Pty Ltd which is 100% owned by Coastal Resources Pty Ltd. the
Kanye Manganese Project is close to the K-Hill manganese deposit where a TSX
listed public company reports a PEA based on a life of project MnO grade of
15.2% yielding a NPV (8%) of US$984m and an IRR of 29.4% - a full feasibility
study was under way as of July 2023.
During 2023 on 9 February 2023 the Company announced the results of its maiden
drilling programme at the Kanye Manganese project the highlights of which
were:
· Maiden Kanye drilling programme - 11 mainly shallow, angled RC
holes totaling 682m at Moshaneng prospect as well as one short diamond drill
hole at Loltware prospect.
· Moshaneng drilling intersected a zone of flat-lying detrital,
supergene manganese-iron mineralisation which appears to infill an irregular
karst surface over a minimum strike length of 400m.
· Among assay intervals encountered were:
a. 6m @ 28.64% MnO from 6m depth in hole MS-RC-12
i. Including 4m @ 35.38% MnO from 8m depth
b. 3m @ 21.85% MnO from 4m depth in hole MS-RC-06
c. 3m @ 21.20% MnO from 2m depth in hole MS-RC-07
· Potential for at least another 100m of strike extension to the
southeast of holes MS-RC-07 and MS-RC-012 would extend the total strike length
to a minimum of 500m
· Less than 25% of the more than 2km potential extent of the target
defined by soil geochemistry has been drill tested
· Grades compare favourably with reported grades on neighbouring
more advanced manganese projects and therefore the Kanye project warrants
detailed evaluation and drilling with a view to establishing the mineral
resource potential
Drilling at Loltware encountered encouraging manganese enhancement in core,
warranting further investigation.
On 24 July 2023 and 6 September 2023 the Company announced the results of a
two phase metallurgical testing programme undertaken by Wardell Armstrong
International, the highlights of which were:
· Phase 2 work followed on from previous metallurgical testing
reported in July 2023, aiming to optimise manganese recovery from the
'Moshaneng' sample whilst minimising the reagent consumption rates to improve
process economics.
· Sulphuric acid leaching optimisation testwork found that
manganese recoveries of 99.5% were achievable at moderate process conditions,
specifically 60°C leaching temperature, 300kg/t of sulphur dioxide addition,
and 284kg/t of sulphuric acid consumption.
· Grind size had minimal influence on the final manganese recovery
with 88.0% and 88.3% manganese recovery achieved for feed material particle
size distributions of 80% passing 200µm and 80% passing 150µm respectively.
· Leaching temperature had negligible effect on the final manganese
recovery with 88.0% and 89.5% manganese recovery achieved for leach
temperatures of 60°C and 90°C respectively.
· Leach kinetics of manganese recovery were dependent on the
sulphur dioxide addition rate. Sulphur dioxide introduced incrementally,
demonstrated a staged manganese recovery.
· A Benchmark Project Review was carried out on three recent
manganese projects which were identified as having a similar geographical
location and/or producing final products of a similar specification.
a. Giyani Metals K.Hill Project Botswana;
b. Manganese X Energy Corp. Battery Hill Project Canada;
c. Euro Manganese Inc. Chvaletice Project Czech Republic;
· The Kanye manganese deposit demonstrates an excellent overall
manganese recovery using moderate leaching conditions compared with
benchmarked projects.
· The Kanye deposit composite showed a negligible increase in
manganese leaching performance at elevated temperatures, which is a favourable
outcome from an OPEX perspective.
Further metallurgical test work will be considered at a later stage of project
advancement.
Post the period end on 27 August 2024 the Company announced information on the
positive outcome of geophysical surveying during August 2024 at its 100% owned
Kanye manganese project in Botswana which was planned to assist in extending
the potential footprint of the deposit.
Highlights:
· IP/resistivity geophysical surveying has traced near surface
areas of high conductivity/low resistivity which could reflect manganiferous
mineralisation for about 900m to the NW of the previously exposed manganese
occurrence in the Moshaneng borrow pit, making 1.4km of potential target
strike extent in total.
· The geophysical anomaly extends up to 300m width in places,
double that in the area already drill tested, and remains open further to the
NW beyond the limit of the survey.
· Follow-up RC drilling will be planned to confirm possible mineral
continuity and grade. If mineralisation of economic interest is found by
drilling then an extension to the IP survey is recommended to follow the
strike further.
Post-acquisition there have been no indications that any impairment provisions
are required in relation to the carrying value of the Kanye Manganese Project.
The capitalised cost at 30 June 2024 was £1,141K (December 2023 £1,109K)
9. Borrowings
Unaudited Audited
30 June 2024 31 December 2023
£'000 £'000
Balance at beginning of period 526 623
Convertible loan receipts - -
Equity allocation - (202)
Transaction costs (70)
Finance charge accrued 64 175
590 526
As announced on 30 June 2022 the Company further to its announcement of 23
November 2021 confirmed that it had issued two drawdown notices of £350,000
each ("Tranche 1" and "Tranche 2") for a total amount of £700,000 (the
"Original 2022 Convertible Loan") under its £1,000,000 interest free
unsecured convertible loan funding facility with Sanderson Capital Partners
Ltd (the "Lender"), a long-term shareholder in the Company (the "Facility").
The amount drawdown was interest free and repayable in 12 months or can be
converted at any time at the Lender's option into Bezant shares at fixed
prices for Tranche 1 of £350,000, at 0.19 pence per share and for Tranche 2
of £350,000 at 0.225 pence per share. As the conversion feature results in
the conversion of a fixed amount of stated principal into a fixed number of
shares, it satisfies the 'fixed for fixed' criterion and, therefore, it is
classified as an equity instrument. The value of the liability component of
£546,000 and the equity conversion component of £154,000 were determined at
the date of the drawdowns. The fair value of the liability component, included
in current borrowings, at inception was calculated using a market interest
rate for an equivalent instrument without conversion option. The discount rate
applied was 25%.
Under the terms of the Facility the Lender is due;
a) a drawdown fee of £14,000 being 2% of the amount drawdown which was
settled by the issue of 12,522,361 new ordinary shares of £0.00002 each
("Shares") credited as fully paid at 0.1118 pence per share being the five-day
VWAP on 28 June 2022 (the "Drawdown Fee Shares"); and
b) £350,000 of three year warrants over Shares (the "Warrants"). The exercise
price for the Warrants are as follows:
· £175,000 at 0.25 pence per share for the drawdown of Tranche 1;
and
· £175,000 at 0.30 pence per share for the drawdown of Tranche 2.
On 15 June 2023, the Company announced, it had by an agreement dated 14 June
2023 agreed with the Lender to extend the repayment date for the Drawdowns to
23 December 2024 (the "New Repayment Date") and adjusted the conversion prices
of Tranche 1 and Tranche 2 to 0.08 pence per share (the "New Conversion
Price"). The Company as a loan extension fee i) paid the Lender a £70,000
facility extension and documentation fee equivalent to 6.67% per year which
was settled by the issue of 87,500,000 new ordinary shares of 0.002p each
("Shares") at the New Conversion Price ("Facility Extension Fee Shares");
and ii) issue the Lender 437,500,000 warrants over Shares exercisable at 0.12
pence per Share (the "Warrant Exercise Price") exercisable for two years from
the date of the Agreement. (the "Facility Extension Fees"). The Company has an
option to convert all or part of the £700,000 drawdown if the Company's share
price exceeds 0.14 pence for 10 or more business days (the "Modified Terms").
The Company determined that the Modified Facility was in accordance with IFRS
9 substantially different from the terms of the Facility and that therefore
the equity instrument comprising the Original Facility was deemed to be repaid
on 15 June 2023.
The Modified Facility is an equity instrument as the conversion feature
results in the conversion of a fixed amount of stated principal into a fixed
number of shares, so it satisfies the 'fixed for fixed' criterion and,
therefore, it is classified as an equity instrument which requires the
valuation of the liability component and the equity conversion component. The
fair value of the liability component, included in current borrowings, at
inception was calculated using a market interest rate for an equivalent
instrument without conversion option. The discount rate applied was 25%.
On 5 March 2024 the Company announced that by an agreement dated 4 March 2024
it had agreed with the Lender to extend the repayment date for the £700,000
drawn down under the Facility to 31 July 2025 and that the £700,000 drawn
down is now convertible by the Lender at the fixed price of 0.06 pence per
share (the "New Conversion Price") (the "Extended Facility") .
The Company determined that the Extended Facility was in accordance with IFRS
9 not substantially different from the terms of the Modified Facility and that
therefore the Modified Facility has not been deemed repaid when the Extended
Facility terms were agreed.
10. Share capital
Unaudited Audited
30 31
June December
2024 2023
£'000 £'000
Number
Authorised
7,500,000,000 ordinary shares of 0.002p each ((1)) 150 100
5,000,000,000 deferred shares of 0.198p each ((2)) 9,900 9,900
10,050 10,000
((1)) This is the number of ordinary shares which the directors were
authorised to issue at the AGM on 31 July 2023. This authority was increased
to 11,000,000,000 shares at the AGM on 31 July 2024.
( )
((2)) The Deferred Shares have very limited rights and are effectively
valueless as they have no voting rights and have no rights as to dividends and
only very limited rights on a return of capital. The Deferred Shares are not
admitted to trading or listed on any stock exchange and are not freely
transferable.
Allotted ordinary shares, called up and fully paid
As at beginning of the period 101 101
Share subscription for cash 102 102
Shares issued for exploration project acquisitions - -
Shares issued on exercise of warrants - -
Shares issued in lieu of directors' and PDMR fees 10 10
Shares issued to settle finance costs 1 1
Shares issued to settle consultants fees 13 13
Total ordinary shares at end of period 227 227
Allotted deferred shares, called up and fully paid ((2))
As at beginning of the period 1,978 1,978
Total deferred shares at end of period 1,978 1,978
2,205 2,205
Ordinary and deferred as at end of period
Number of shares 30 June Number of shares 31 December 2023
2024
Ordinary share capital is summarised below:
As at beginning of the period 11,380,918,869 5,081,399,113
Share subscription for cash ((1)) - 5,075,000,000
Shares issued for exploration project acquisitions ((2)) - 15,763,889
Shares issued to settle Directors' and PDMR fees ((3)) - 475,590,222
Shares issued to settle finance cost ((4)) - 87,500,000
Shares issued to settle consultants' fees ((5)) - 645,665,645
11,380,918,869 11,380,918,869
As at end of period
Deferred share capital is summarised below:
As at beginning of the year ((1)) 998,773,038 998,773,038
998,773,038 998,773,038
As at end of period
Notes re shares issued during 2023
((1)) (a) on 26 April 2023 the Company issued 1,875,000,00 shares to certain
directors, investors and existing shareholders for £750,000
(b) on 18 December 2023 the Company issued 3,200,000,000 shares to
certain directors, investors and existing shareholders for £800,000
((2)) On 21 June 2023 the Company issued 15,763,889 shares in relation to the
acquisition of Virgo Resources Ltd.
((3)) (a) On 26 April 2023 the Company issued 218,700,952 shares to settle
fees due to Directors and persons discharging managerial responsibilities
under Market Abuse Regulations (PDMRS) of £174,960.
(b) On 18 December 2023 the Company issued 256,889,280 shares to
settle fees due to Directors and PDMRS of £64,222
((4)) On 21 June 2023 the Company issued 87,500,000 shares to settle finance
fees of £70,000.
((5)) (a) On 13 January 2023 the Company issued 7,926,024 shares to settle
fees due to a consultant of £6,000.
(b) On 26 April 2023 the Company issued 246,808,068 shares to settle
fees due to consultants of £101,250.
(c) On 12 May 2023 the Company issued 104,875,000 shares to settle
fees due to consultants of £41,950.
(d) On 16 November 2023 the Company issued 44,056,553 shares to
settle fees due to consultants of £20,700.
(d) On 18 December 2023 the Company issued 242,000,000 shares to
settle fees due to consultants of £60,500
Unaudited Audited
30 31
June December
2024 2023
£'000 £'000
The share premium was as follows:
As at beginning of period 41,431 39,507
Share subscription for cash - 1,448
Shares issued to settle consultants fees - 218
Shares issued - Acquisitions - 42
Shares issued - Finance cost - 68
Shares issued to settle Directors' and PDMR fees 1 (#_ftn1) - 230
Share issue costs ((1)) (51) (72)
Warrants expired during period - 31
Warrants exercised - -
Warrants issued during period - (41)
41,380 41,431
As at end of year
((1)) The share issue cost related to the fundraising in December 2023.
Each fully paid ordinary share carries the right to one vote at a meeting of
the Company. Holders of ordinary shares also have the right to receive
dividends and to participate in the proceeds from sale of all surplus assets
in proportion to the total shares issued in the event of the Company winding
up.
11. Reconciliation of operating loss to net cash outflow from operating activities
Unaudited Unaudited
Six Six
months months
ended 30 June ended 30 June
2024 2023
£'000 £'000
Operating loss from all operations (487) (463)
Share based payments 53
Impairments 75
Finance Charge - non cash 64
Foreign exchange movement (21) -
Shares issued - Directors fees - 43
Share issued - Consultants - 19
Shares issued - Legal/finance fees - 70
(Increase)/decrease in receivables 182 20
Increase/(decrease) in payables 44 65
(90) (246)
Net cash outflow from operating activities
12. Subsequent events
On 16th July the Company announced that it had issued 158,222,188 new Ordinary
Shares of 0.002p each to settle a total of £39,180 of accrued consultancy
fees.
Other than the foregoing there are no significant events have occurred
subsequent to the reporting date that would have a material impact on the
consolidated financial statements.
13. Availability of Interim Report
A copy of these interim results will be available from the Company's
registered office during normal business hours on any weekday at Floor 6,
Quadrant House, 4 Thomas More Square, London E1W 1YW and can also be
downloaded from the Company's website at www.bezantresources.com
(http://www.bezantresources.com) . Bezant Resources Plc is registered in
England and Wales with company number 02918391.
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