Bezant Resources (BZT ) has secured a £1 million unsecured convertible loan funding facility with the financial services company and long term shareholder Sanderson Capital Partners.

The London-listed copper-gold exploration company noted that the convertible loan note will be available in three tranches – at share prices of 0.19p, 0.225p and 0.25p, respectively. 

The Facility enables Bezant to draw down up to £1m over the next 12 months in a staged manner with fixed conversion prices at approximately 45%, 70% and 90% premiums to the placing price of 0.13 pence per share to the £1.2m placing announced on 21 October 2021. 

The facility represents a potential further source of working capital for Bezant during a time in which ‘the funding market for junior exploration companies can be subject to market volatility.’ 

The group can use the facility to fund the working capital requirements of its business and its subsidiaries as it determines, but is not required to draw down under the facility, it explained.

Colin Bird, Executive Chairman of Bezant Resources, explained that the rise in c is prompting the business to tread cautiously. 

He said the speed of vaccination development has been impressive as have the vaccination programs in many developed countries however “there are still large swathes of Africa, Asia and South America where vaccination rates are very low and vaccinations in short supply.”

“At the corporate level it has reminded us that the unknown risk is around the corner and it is against this background that the Board has decided to put in place the Facility as insurance to ensure the Company has the ability to obtain funding,” Bird told shareholders this morning.

He added, “As a shareholder I prefer to avoid dilution but as Chairman I know part of my role is to ensure that the Company has access to sufficient working capital to develop its projects and this is why we have arranged this loan facility as security against uncertain times”. 

On Monday, Bezant Resources informed investors that a Philippine government review relating to the Mankayan copper-gold project was ongoing. Specifically, it is reviewing Crescent Mining Development Corp’s renewal application for a second 25-year term.

The company announced back in September 2021 that it had entered into a conditional agreement with IDM Mankayan Pty Ltd to advance the Mankayan copper-gold project. 

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