Business
Equity fundraising to raise £550,000 gross
Equity fundraising to raise £550,000 gross.
About this update from Bezant Resources Plc
[{"type":"text","content":"\n \nRNS Number : 5876Y Bezant Resources PLC 06 December 2017 \n\n6 December 2017\nBezant Resources Plc\n(\"Bezant\" or the \"Company\")\n \nEquity fundraising to raise £550,000 gross and Revised Development Funding Strategy\nBezant (AIM: BZT), the AIM quoted gold and platinum development company, announces that it has raised, in aggregate, £550,000 before expenses through a conditional placement of 110,215,750 new ordinary shares of 0.2 pence each in the capital of the Company (the \"Placing Shares\") at a price of 0.4 pence per share (the \"Issue Price\"), arranged by Peterhouse Corporate Finance Limited (\"Peterhouse Corporate Finance\"), and a subscription for a further 27,284,250 new ordinary shares (the \"Subscription Shares\") at the same price, with certain existing and new institutional and other investors (together, the \"Fundraising\"). The net proceeds of today's Fundraising will provide additional working capital for the group whilst it pursues a revised development funding strategy, as set out below. \nStrategic Update and Revised Development Funding Strategy \nFurther to the Company's announcement of 15 November 2017, regarding the successful conclusion of the mining to bedrock and grade verification process and initiation of the next phase of production ramp-up at its wholly-owned Choco gold-platinum project in Colombia (the \"Choco Project\"), the Board has undertaken a strategic review of the development options and requisite funding required to achieve a sustained full-scale commercial mining operation and has concluded that it is in the best interests of the Company and its shareholders to temporarily halt production and reduce project expenditure whilst it seeks to procure the funding required to complete the full-scale ramp-up process through either project/asset level financing or an appropriate farm-in partner. \n \nAs part of its strategic review process, the Board has held discussions with a number of institutional shareholders and the Company's brokers and concluded that to continue pursuing mining development at the Choco Project financed through further equity raisings on the capital markets would be overly dilutive to existing shareholders and that, the operational development and proving-up of the project achieved to date, provides greater scope to pursue alternative, less dilutive,...