Bezant Resources (AIM:BZT ) said in its half-year report that the six months to 30 June 2020 was a period of ‘consolidation and acquisition’ as it refocused its interests to Southern Africa.
The copper-gold exploration and development company slashed its loss after tax during the period to £0.261m (1H19: £0.387m) and ended the period with around £0.413m in cash.
In April, Bezant completed its acquisition of a 30% interest in the Kalengwa copper silver project in Zambia where a number of ‘drill ready’ targets have been identified. The group intends to commence drilling ‘the most important anomalies’ in the final quarter of 2020.
The Company completed its acquisition of Virgo Resources and its interests in the Hope Copper-Gold Project in Namibia in August 2020. Executive Chairman of Bezant Resources Colid Bird said at the time that this represented “a significant milestone” for the Company.
Bezant announced its intention to acquire 100% of Virgo Resources and the project which holds 10.2m tonnes JORC category grade of about 1.9% copper and 0.3 g/t of gold in June 2020.
The project area has good infrastructure and a history of successful mines owned by major mining companies, Bezant noted, adding that Namibia holds ‘good copper and zinc potential.’
Earlier this month, Bezant kick-started its initial exploration program including a reconnaissance drill programme to test for gold and further test additional anomalies.
Outlook
Bezant remains focused on the Eureka Project in Northern Argentina which it said remains ‘in good standing’ and that it already has several potential collaboration or joint venture partners.
‘We are currently considering all alternatives, not excluding carrying out a limited exploration programme to test the significant geophysical anomalies in the general red-bed region and the contact between the older and younger rocks,’ the Company told investors.
Bezant believes it will be able to raise additional funds, as and when required, to meet its working capital and expenditure requirements going forward. It said it has ‘a reasonable expectation’ that the group can continue in operational existence for the foreseeable future.
‘Whilst we are in a period of global uncertainty and COVID-19 is a known unknown the board feels very confident with the underlying quality of our project portfolio in copper and gold since they are in metals which have short and mid-term strong potential,’ added Bird.
In a separate announcement, Bezant announced that Raju Samtani and Ed Slowey will be joining the board with immediate effect, as finance director and technical director, respectively.
"We have announced in the last six months significant additions in Zambia and Namibia to the Company's attractive portfolio of copper projects and more recently the commencement of exploration at the Hope Copper-Gold project in Namibia,” said Bird.
He added, “Managing finance and geology are both areas of importance in the development of an exploration company with an expanding portfolio of projects.”
Shares in Bezant Resource have risen by over 100% in the last three months from 0.11p in August 2020 to open 11.97% lower this morning at 0.25p following the announcement.
Bezant Resources has repositioned its portfolio as copper demand continues to surge. During 2020, the group ramped up its copper projects by acquiring Kalengwa in Zambia and the Hope project in Namibia.
As a result, the Company is now ‘well positioned’ in the gold-copper space just as Copper prices jump well above pre-COVID-19 levels, with the commodity seeing its highest quarterly increase since mid-2009 as a result of resurgent sales in China with demand for copper forecast to double by 2030.
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