Update re Mankayan Project

RNS Number : 4550X

Bezant Resources PLC

21 February 2017

 

21 February 2017

Bezant Resources Plc

("Bezant" or the "Company")

Notification from DENR re Possible Cancellation of Mankayan Project's MPSA

Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, announces that on 20 February 2017 its associate, Crescent Mining and Development Corporation ("CMDC"), received formal notice from the Philippines' Department of Environment and Natural Resources ("DENR") regarding Mineral Production Sharing Agreement ("MPSA") (No. 057-96-CAR), held by CMDC, in respect of the Group's Mankayan Copper-Gold Project in the Philippines (the "Mankayan Project").

The notification received from DENR states, inter alia, that the DENR deems the Mankayan Project to be situated within a "watershed area", being an area which falls under the Mining Act of 1995, and is therefore subject to possible cancellation by the DENR unless, as requested, CMDC can demonstrate why this should not be the case.

Bezant's Board understands that the notification received from the DENR forms part of the potential cancellation of a total of approximately 75 MPSAs that are allegedly located within watershed areas. Aside from the potential cancellation of such MPSAs, the DENR has already revoked the contracts of approximately 25 mining companies in the Philippines during 2017 to date. CMDC has been requested, pursuant to the notification, to demonstrate why its MPSA should not be cancelled pursuant to, inter alia, DENR's mandate, the Mining Act and other existing applicable laws, rules and regulations that protect watersheds and their ecological services.

Whilst the Board notes that the group's Mankayan Project was fully impaired during its financial year ended 30 June 2016, in light of the uncertainty and perceived political risk in the Philippines, CMDC will, in due course, be providing a response to the DENR.

A further update(s) will be made in due course as and when appropriate.

Ed Nealon, Chairman of Bezant, commented:

"We are clearly disappointed by the DENR's notification with respect to the potential cancellation of CMDC's MPSA alongside the 74 other affected MPSAs. We believe that the DENR has acted without appropriate authority and are further disappointed by The Phillipine President Duterte's support of DENR's actions.  We will be responding to the DENR request in due course, but will also take a longer term pragmatic view on the likelihood of a successful outcome, the potential to achieve a future sale or JV for the project and the costs involved in maintaining this non-core project given the current political environment in the Philippines.

"To date, the Company has returned more capital to shareholders (8p per share in May 2013) than has been spent, in aggregate, on the acquisition, exploration and development of the Mankayan Project, funded by the historic option consideration received from Gold Fields Netherlands Services BV. We will continue to focus our efforts on our Copper and Gold exploration project in Argentina and our promising Colombian Platinum and Gold development project."

For further information, please contact:

Bezant Resources plc Bernard Olivier Chief Executive Officer                                Laurence Read Executive Director / Communications Officer	Tel: [phone] Tel: [phone]
Strand Hanson Limited (Nomad)                                James Harris / Matthew Chandler / James Dance	Tel: [phone]
Beaufort Securities Limited (Broker) Elliot Hance	Tel: [phone]
or visit 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 Regulation (EU) No. 596/2014.

 

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