Aim-listed Bezant Resources has entered into an agreement with US-based YA II PN, an institutional investor managed by Yorkville Advisors Global, for a £4-million gross financing facility, which is being drawn down in full.

In a statement to shareholders, the company explains that the facility, structured as a non-convertible unsecured loan repayable in cash, provides Bezant with additional working capital and financial flexibility to support its ongoing operations, corporate requirements and development activities.

The financing comes at an important stage in the company’s development, with copper concentrate production now under way at its Hope and Gorob project, in Namibia, and the first shipment anticipated in November.

The facility offers an alternative to an immediate £4-million equity placing, at a discount to the current share price, allowing the company to preserve financial flexibility and seek to minimise dilution for existing shareholders.

Bezant explains that it is a non-convertible loan facility, repayable in cash in ten equal monthly instalments, with the first scheduled repayment due on January 15, 2027.

The company says the board intends to meet repayment obligations primarily from projected cash flow, with the facility providing an additional working capital headroom during the period the company completes commissioning and transitions to regular concentrate sale from its mining operations at Hope and Gorob.

The facility provides funding to support the Hope and Gorob Phase II expansion and an increase in yearly copper production during 2027.

The facility also enables a resource development programme to underpin a targeted minimum of 25 000 t/y of contained copper production through a Phase III expansion.

Historically strong copper prices and continuing global mine supply constraints provide a favourable market backdrop for the company’s emerging production activities.

Bezant executive chairperson Colin Bird says the £4-million Yorkville facility represents an important addition to Bezant’s financial resources at a time when the company is moving into a new phase of its development.  

He explains that an important consideration in selecting this financing structure was the preservation of shareholder value. 

“We believe that raising £4-million gross through an immediate conventional equity placing, at a time when the cash-generating potential of our operations has yet to be fully recognised in the share price, would result in significant dilution for existing shareholders.  

“We believe shareholders are better served by allowing the company’s developing production and cash flow to demonstrate the underlying value of its assets before considering substantial new equity issuance,” says Bird.

He adds that the facility provides the company with the working capital flexibility to support its operations, manage the timing of expenditure and anticipated cash receipts and maintain momentum across activities.

He explains that the company’s ambitions extend well beyond initial production, with Phase II and Phase III are targeting a minimum production capacity of 25 000 t/y of contained copper, demonstrating the scale of the opportunity we are working towards.

“We now have the financial flexibility to support our immediate requirements, copper concentrate production has commenced, and the longer-term opportunity at Hope and Gorob remains substantial. Our focus is on converting these advantages into cash generation and shareholder value.”

MARKET OUTLOOK

Bezant says its progress in Namibia coincides with a period of historically strong copper prices. The global copper industry continues to experience mine supply constraints, including declining ore grades at established operations, operational disruptions and increasingly lengthy development timelines for new projects.

At the same time, copper demand continues to benefit from electrification, electricity infrastructure investment, renewable energy development and expanding requirements associated with data centres and industrial growth.

Bezant says its board believes these factors provide an encouraging longer-term backdrop for copper producers and developers, particularly those with established mineral resources and opportunities for production expansion.

Against this background, Bezant says it remains focused on converting its operational progress into sustainable cash generation while advancing the substantial potential of its copper assets.