PCB Gold Project Update, Zambia

30 October 2024

Bezant Resources PLC

("Bezant" or the "Company")

PCB Gold Project Update, Zambia

Bezant Resources ("Bezant" or the "Company") is pleased to provide shareholders with an update following the technical review of the PCB gold project in Zambia. A collaboration agreement signed with PCB Mining Limited ("PCB Mining") in relation to a recently active gold operation in Zambia required a technical assessment of exploration potential, grade control, mining operations and mineral processing by Bezant.

Highlights

·    Geological investigation has provided a good understanding of the fundamentals of gold mineralisation and distribution within the concession and adjacent areas. The assessment suggests the potential for significant amounts of gold mineralisation close to surface and therefore with open pittable potential.  

·    PCB Mining has now been granted a small-scale mining licence No. 38211-HQ-SML covering the project area, valid for 10 years to 25^th August 2034 which permits mining activities for gold and other minerals on the property.

·    Operating mines in the area are successfully processing similar mineralisation types using low capital and operating cost gravity methods. 

·    The Company's investigations also suggest that low capital cost additions to the processing plant could considerably reduce operating costs producing better productivity and improved gold recoveries.  

Colin Bird, Executive Chairman of Bezant, commented "This initial assessment was necessary to establish the basis for our ongoing collaboration agreement with PCB Mining and has created a firm foundation for these discussions.

The parties have agreed to advance discussions completing the necessary terms of the original collaboration agreement before year end. We will keep the market informed of material progress."

Terms of the PCB Mining Exclusive Collaboration Agreement

On 7 June 2024 Bezant entered into an exclusive collaboration agreement with PCB Mining Limited ("PCB Mining") in relation to its small scale exploration licence 24988-HQ-LEL in Zambia ("PCB Licence") (now covered by small-scale mining licence 38211-HQ-SML). Bezant will earn a 15% interest in the PCB Licence / PCB Mining by providing a project restart plan for PCB Mining and assisting PCB Mining in obtaining financing for the project restart. The key commercial terms are:

1. Services to be provided: PCB Mining have advised there is a plant on site owned by PCB Mining and PCB Mining wish to appoint Bezant on an exclusive basis for 180 days to;

a.   prepare and construct a capital and operating cost budget to recommence mining operations at the Project ("Project Restart"); and

b.   assist PCB Mining in obtaining finance for the Project Restart and the appointment of a mine contractor and engineering consultant to oversee the recommencement of the Project Restart (the "Services").

2. Commencement of Services: Bezant are to commence the Services within 15 days of the agreement.  Commencement is defined as both physical activity within the PCB Licence boundaries and desktop studies related to the Services which will include technical, financial and legal due diligence in relation to a project of this nature.

3. Fee for Services: The fee for the Services is a 15% interest in the PCB Licence and / or PCB Mining.

4. Trigger for Issue of 15%: In the event of the completion of funding for the Project Restart or a proposed change of control of PCB Mining and or sale of equity in or joint venture of PCB Mining or the Project ("Trigger Event") then Bezant has the right to be issued by PCB Mining that number of PCB Mining shares ("Bezant's PCB Mining shares") that taking into account Bezant's PCB Mining shares equals 15% of PCB Mining's issued share capital as enlarged by the issue of the Bezant's PCB Mining shares and the issue of any unissued shares or shares related to options or other rights to subscribe for PCB Mining shares.

5. Right to Match: Bezant have the right but not the obligation to match the terms offered by a mine contractor in relation to the Project Restart ("Right To Match").  In the event that Bezant exercise their Right To Match then Bezant will be issued a 40% shareholding in PCB Mining (inclusive of the 15% Fee for the Services).

6. No commitment to Obtain Financing: Bezant makes no representation or commitment that it will be able to obtain funding for the Project Restart.

Licence Information: As per Zambia Mining Cadastre accessed on 7 June 2024:

1) Licence 24988-HQ-LEL is a small scale exploration licence covering 375.4434 ha in the name of PCB Mining Limited (the "PCB Licence");

2) The PCB Licence was applied for on 24 June 2019 and the granted on 11 January 2023 and has an expiry date of 10 January 2027; and

3) The PCB Licence is for cobalt, copper, gold, iron ore, lead, manganese, silver, zinc.  

The PCB Licence is located in the north-western province of Zambia. The PCB Licence was subject to a dispute over ownership between PCB Mining and ZCCM-IH to which PCB Mining obtained judgment in its favour dated 11^th September 2023. The Company understands from PCB Mining that ZCCM-IH has not exercised its right to appeal within the stipulated time and so have no legal claim to the PCB Licence but notwithstanding this it is possible that the PCB Licence could in the future be subject to further or new challenges or other disagreements.

Geology, location and prospectivity: Regionally, the area is underlain by a mixed series of partially metamorphosed sediments, comprising dolomitic sandstone, siltstone, sandstone and quartzite. Multiple steeply-dipping quartz veins with variable strike directions have been noted, mainly associated with the margins of the quartzite units.

There appears to be a vein conjunction within the PCB Licence where a 5-6m wide quartz vein hosted in weathered iron-rich clays was previously the focus of unlicensed artisanal gold activity over a strike length of 25-30m above surface. This vein can be seen at surface to host traces of malachite and chalcopyrite copper mineralisation and defines a potential target to be tested by trenching or drilling, to determine its length and mineralization.

Elsewhere both on the property and on adjoining ground further quartz veins occur and significant artisanal gold diggings have been seen along nearby drainages.

Overall, it is believed that potential exists for multiple gold-mineralised veins and structures.

Information on PCB Mining: PCB Mining Limited was registered on 28 November 2018 in Zambia with company number 120180010015 and its main activity is the PCB Project. The non-executive chairman of PCB Mining is Caleb Amos Mulenga and its executive director is Lukonde Makungu who is also an executive director of Cooperlemon Consultancy Limited which is a private Zambian based mining consultancy firm.

For further information, please contact:

or visit http://www.bezantresources.com

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

Qualified Person:

Technical information in this announcement has been reviewed by Edward (Ed) Slowey, BSc, PGeo, technical director of Bezant Resources Plc. Mr Slowey is a graduate geologist with more than 40 years' relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and is a Qualified Person under the AIM rules.  Mr Slowey has reviewed and approved this announcement.