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Bezant raises £0.6m, gets new executive chairman
Mineral exploration and development company Bezant announced on Monday that it has raised £0.6m before expenses through a subscription and placing of 133,333,333 new ordinary shares at a price of 0.45p per share.
The AIM-traded firm said the fundraising comprised a placing, which was oversubscribed, of 126,436,773 new ordinary shares via the company's broker, Peterhouse Corporate Finance, and a subscription for a further 6,896,560 new ordinary shares, both at the issue price, with certain existing and new strategic investors.
It said the fundraising was being undertaken in two tranches, comprising the initial issuance of 44,444,444 new ordinary shares utilising the company's pre-existing share capital authorities, and the conditional issuance of a further 88,888,889 new ordinary shares, subject to the requisite shareholder approval.
The first tranche was expected to be admitted to trading on AIM at 0800 GMT on 9 February, while the issue of the second tranche was conditional on the passing of certain resolutions by Bezant's shareholders at a general meeting, of which shareholders were still to be advised.
"The fundraising has been undertaken to provide general working capital for Bezant and secures the support of Tiger Resource Finance, alongside its individual directors, including Colin Bird, as strategic investors in the company," Bezant's board explained in its statement.
It said Bird participated in the fundraising in both a private personal capacity and in conjunction with certain of his associates, including Tiger Resource Finance.
That investor group subscribed for 88,888,889 new ordinary shares, representing £0.4m.
Subject to the passing of the resolutions at the general meeting, Bezant said the investor group would together hold approximately 11.9% of the company's issued share capital.
It said it intended for Bird to be appointed to the board as executive chairman, subject to satisfactory completion of due diligence by the company's nominated adviser.
As a result, Edward Nealon intended to stand down from the role of chairman following the general meeting and Bird's appointment and, at the appropriate time, to leave the board of the company.
Laurence Read, who assumed the role of chief executive officer on 15 January last year, and Colin Bird would then work closely together towards realising value from the company's current asset portfolio, starting with a full geological and corporate review of operations, the board explained.
"Bezant has a strong existing portfolio of metals assets with both near-term production potential and the development opportunity for major, longer term mining operations with highly robust economics," said CEO Laurence Read.
"Today's fundraising introduces a new supportive investor group to Bezant with a successful track record in platinum production and asset transactions."
Read said metals projects of the calibre contained within Bezant's portfolio were "relatively rare", and the firm's task was now to review every opportunity to create value from its assets and seek to generate value for shareholders.
"I would like to thank our existing shareholders for their support during this time of transition for the company."