Signing of JV Agreement with Bezant Resources PLC
11 November 2021
Caerus Mineral Resources PLC
('Caerus' or the 'Company')
Signing of Joint Venture Agreement with Bezant Resources PLC
Caerus Mineral Resources (LON: CMRS), the exploration and resource development company focused on developing mineral resources in Europe to support the global "Clean Energy" initiative, is pleased to inform shareholders of the signing of a Joint Venture Agreement (the "Agreement") with AIM-listed Bezant Resources PLC (AIM: BZT) (" Bezant").
Highlights
· The Joint Venture ("JV") covers the Troulli, Kokkinapetra and Anglisides licences, held by Caerus in Cyprus ("JV Properties")
· The JV begins with immediate effect, with Bezant's financial contribution backdated from the commencement of diamond drilling at Troulli on 16 September 2021
· The Parties have committed an initial sum of USD1.0 million towards resource development and to take the Project to feasibility
· Caerus will manage the exploration and resource development phase of the programme, with Bezant will be responsible for;
o Project feasibility studies and mine development; and
o Arranging funding and guarantees required by third party funders for plant and infrastructure funding to commence mining
· Once in production, Caerus will, as a priority, be refunded for all direct exploration expenditure committed to getting the projects to the feasibility stage and will receive 20% free-carried interest over the life of mine.
Commenting on the Joint Venture Agreement, Chief Executive Officer Martyn Churchouse said, " The signing of the Joint Venture with Bezant is a major step forward for the Company. The Agreement allows us to share the exploration and development risk associated with the Troulli - Kokkinapetra Project. At the same time, it frees up funding and capacity to expand our exploration and resource development programme across the rest of our licences. Bezant will bear the burden of arranging funding for the feasibility stage and the capital expenditure for both infrastructure and mine development whilst the Caerus will, once production commences, be reimbursed for all direct exploration expenditure and will receive a 20% free-carried interest over the life of mine."
Summary of the Terms of the Joint Venture Agreement ("JV" or "Agreement")
Commencement Date
The terms of the JV are effective immediately, with joint funding backdated to the commencement of diamond drilling at Troulli on 16 September 2021
JV Properties
The Agreement covers all licences associated with the Troulli, Kokkinapetra and Anglisides projects
Option Agreement
The Option agreement signed on 30 July 2021 remains in full force, allowing the Parties to joint venture further properties in due course.
Funding and Budgets
The Parties have committed to a budget of USD1.0 million for direct exploration and resource development on the JV Properties. Caerus will provide budget and manage cash calls
Caerus Exploration Costs
Caerus will be paid 70% of excess cash from operating cash flow after commercial production is achieved until all direct exploration costs have been refunded. Excess cash from which payment to Caerus will be made will be calculated based on revenue less recognised operating costs
Technical Committee
A joint technical committee will operate and be chaired by Caerus during the exploration and resource development phase and by Bezant during the feasibility, construction, and production phase
Jubilee Metals Group ("Jubilee") Agreement
In the event that Jubilee Metals Group elects to enter into a joint venture and design, construct and finance a processing plant for the JV Properties, Caerus and Bezant will subordinate their interests under the Joint Venture Agreement to the 15% free participation due to Jubilee under its agreement with Caerus
For further information , please visit www.caerusmineralresources.com or contact:
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Caerus Mineral Resources plc: |
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Martyn Churchouse Chief Executive Officer |
info@caerusmineralresources.com +44 (0)1249 782162 |
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Novum Securities |
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Jon Bellis |
+44 (0) 20 7399 9425 |
Follow us on Twitter at @CaerusMineral
About Caerus Mineral Resources
Caerus Mineral Resources is a European focused copper-gold resource development and exploration company with a portfolio of mineral exploration licences located in Cyprus. The Country has a well-developed infrastructure and history of mineral exploration and production, which has been dormant over the last 50 years and provides significant undiscovered value.
With investors recognising copper as one of the cornerstone metals for the Clean Energy Transition centred upon the Electric Vehicle and Stationary Energy sectors, Caerus is working to rapidly expand its copper exploration and production objectives. The Caerus licence portfolio includes 16 former mines which operated with an average head grade of approximately 2% copper.
Caerus' licence portfolio comprises brownfield sites, where historic mining has taken place, and greenfield licences, where there has been no systematic exploration. The Brownfield sites and the former high-grade copper-gold mines they host are evidence of rock types and structures conducive to Volcanogenic Massive Sulphide ("VMS") mineralisation. As VMS deposits characteristically occur in camps or clusters, it is the Company's view that its licences are prospective for both extensions to existing or mined-out orebodies together with new discoveries.
The combination of brown and greenfield exploration provides optionality and the opportunity for the Company to quickly build a resource portfolio that can be commercially developed.
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
END
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