Bezant Resources PLC conditionally agreed to sell an 80% stake in its Mankayan copper-gold project in the Philippines to private Singaporean company Mining and Minerals Industries Holding Pte. Ltd., or MMIH.
MMIH unit MMJV Pte. Ltd. will acquire 80% of Asean Copper Investments Ltd., a special-purpose vehicle through which Bezant owns the project, according to an Oct. 7 release.
MMIH had entered into a separate agreement to sell certain mining assets in the Philippines to China Hongxing Sports Ltd., which would constitute a reverse takeover if successfully completed.
The buyer committed to up to roughly US$2.3 million to satisfy Mankayan's exploration requirements until April 2020 and agreed to issue shares worth S$10 million in China Hongxing.
MMIH will enter into an additional funding commitment of up to S$5.5 million to fund a definitive feasibility study if a mineral production-sharing deal on the project is renewed.
Following the transactions, MMJV will own a majority stake in the brownfield Mindanao gold project and the early-stage Luzon gold project in the Philippines.
Bezant said it intends to continue operations as a copper-gold exploration and development company following the sale. The company will hold its retained interest in the Mankayan project, 100% of the Eureka copper-gold project in Argentina, and a 50% earn-in option in the Buffalo project in Zambia.
An independent study in February to bring the Mankayan mine into production outlined three preferred methods, comprising two main block caving options and a sub-level caving "stepping stone" scenario.
As of Oct. 4, US$1 was equivalent to S$1.38.
