Update re Eureka Project - Argentina
4 January 2012
Bezant Resources Plc
("Bezant" or the "Company")
Update re Eureka Copper-Gold Project, Argentina
100 per cent. Ownership Secured for Reduced Payment
Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines, Argentina and Tanzania, announces that it has secured ownership over 100 per cent. of the Eureka Project in Argentina and amended the option terms to reduce the overall acquisition payment by 33 per cent. from the original agreement. The terms allow Bezant to reduce the overall acquisition cost of US$3.9m to US$2.6m by accelerating the pre-existing schedule of payments.
On 7 December 2010, the Company announced that it had, through a wholly-owned subsidiary of the Company, agreed to acquire up to 100 per cent. of the Eureka Project, a package of 11 highly prospective copper and gold exploration licences in the province of Jujuy, north-west Argentina.
In a pre-JORC resource classification, based on internal Company estimates, the Eureka Project has, in aggregate, up to approximately 62 million tonnes grading at approximately 1% copper and approximately 52,000 ounces of gold as credits. The copper oxide mineralisation occurs in loosely consolidated conglomerates and is the focus of the project's economic potential. The near surface mineralisation is amenable to heap leaching, while the carbonate content of the conglomerate is reported to be low, thereby reducing potential acid consumption. It is the intention of Bezant to rapidly prove up a viable near surface gold resource to globally recognised resource standards.
Following the agreement signed yesterday, Bezant will become the sole owner and operator of the Eureka Project and will have total discretion over all exploration expenditure on the project following a cash payment of US$1.6 million to the vendors, superseding all previous conditions.
Commenting today Bernard Olivier, Technical Director of Bezant Resources said:
"This agreement enables us to secure 100 per cent. of the Eureka copper-gold project in Argentina with a 33 per cent. reduction in the total acquisition cost. Given our knowledge and track record in rapid copper-gold exploration and a strong cash position, we have taken the decision to make a reduced, full payment now, and commence with adding value to the Eureka Project by delineating resources to accredited world standards. I look forward to replicating our success at the Mankayan property in the Philipinnes where we established one of the world's largest new copper-gold reserves within a few years and reached agreement in respect of the grant of an option to Gold Fields for the acquisition of the Mankayan Project in late October 2011. The attraction of Eureka is that it has a highly attractive non-JORC resource that is identified near surface and benefits from a mineralogy that could mean low eventual opex costs for extraction. I believe Bezant has now secured 100 per cent. of a valuable asset that can rapidly be explored and potentially host a very attractive low capex and opex mining operation in an economic environment where scale developments are under pressure."
For further information, please contact:
|
Bernard Olivier Technical Director, Bezant Resources Plc
James Harris / Matthew Chandler / David Altberg Strand Hanson Limited
James Maxwell / Jenny Wyllie Singer Capital Markets Limited
Laurence Read / Beth Harris Threadneedle Communications (UK) Email: Laurence.Read@threadneedlepr.co.uk
or visit http://www.bezantresources.com |
Tel: +61 40 894 8182
Tel: +44 (0)20 7409 3494
Tel: +44 (0)20 3205 7500
Tel: +44 (0)20 7653 9855
|
Notes to Editors
Amended Eureka Option Details
On 7 December 2010, Bezant announced that it had, through its wholly-owned subsidiary, Anglo Tanzania Gold Limited ("ATGL"), entered into an Asset Purchase Agreement (the "APA") under which it was assigned the exclusive rights and obligations in respect of an Exploration Agreement with an Option to Purchase and Side Letter (together the "Option Agreement") to acquire up to 100 per cent. of a newly incorporated Company (Puna Metals S.A. ("Puna")), holding a package of 11 prospective copper and gold exploration licences in the province of Jujuy, north-west Argentina (the "Eureka Project").
The APA required the Company to issue an initial four million new ordinary shares and pay cash consideration of US$200,000, to be followed by a further tranche of four million new ordinary shares to be issued no later than 30 April 2011, such shares being duly allotted on 18 April 2011.
The Option Agreement covered a two year period, whereby in return for staggered cash payments of up to, in aggregate, US$3.9 million to 30 December 2012, the Company could acquire up to 100 per cent. of the Eureka Project.
The Company had, prior to the events described below, paid the first two tranches of US$0.5 million each and owned 27.5 per cent. of Puna. The Option Agreement provided for a further payment of US$0.5 million on 1 March 2012 for a further 12.5% and then a final payment of US$2.4 million on 30 December 2012 to acquire the remaining 60%.
On 3 January 2012, ATGL entered into an agreement supplemental to the Option Agreement and amending it whereby, in return for a cash payment of US$1.6 million, ATGL will acquire the 72.5% of Puna that it did not previously own.
Eureka Project
The 11 licences comprising the Eureka Project are located in north-west Jujuy near to the Argentine border with Bolivia and are formally known as Mina Eureka, Mina Eureka II, Mina Sur Eureka, Mina Gino I, Mina Gino II, Mina Mason I, Mina Mason II, Mina Julio I, Mina Julio II, Mina Paul I and Mina Paul II, covering, in aggregate, an area in excess of approximately 5,500 hectares and accessible via a series of gravel roads. To date, no JORC compliant or equivalent resource estimate has been established, but historic exploration activities have been conducted on the project area since the 1980s by Minera Penoles, Codelco and Mantos Blancos, with unaudited unclassified estimates in the order of, in aggregate, up to approximately 62 million tonnes grading at 1% copper and approximately 52,000 ounces of gold as credits. The copper oxide mineralisation occurs in loosely consolidated conglomerates and is the focus of the project's economic potential. The near surface mineralisation is amenable to heap leaching, while the carbonate content of the conglomerate is reported to be low, thereby reducing potential acid consumption.
Copper-Gold Exploration Track Record
In 2007, Bezant acquired a little known copper-gold target for approximately 5.5 million shares and US$500,000 cash. Over a period of approximately three years the Company has proved up JORC Compliant Probable Ore Reserves of 189 million tonnes grading at 0.46% copper and 0.49g/t gold, resulting in total Recoverable Metal Reserves of 811,000 tonnes of copper and 2.21 million ounces of gold for an exploration cost of approximately US$5 million. On 26 October 2011 the grant of an option to Gold Fields Netherlands Services BV ("Gold Fields") for the potential sale of the Mankayan Project for US$63 million in addition to an upfront Option fee of US$7 million was ratified by shareholders. Bezant intends to return a significant amount of cash to Shareholders in due course in addition to progressing the near surface "Eureka" copper-gold project in Argentina.
This information is provided by RNS
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund