Bezant Resources has successfully secured a £4 million financing facility to bolster the expansion of its Hope and Gorob copper project in Namibia. This strategic move comes as the company begins concentrate production, with the first shipment expected in November.
The funding is provided by YA II PN Ltd, a US-based entity and part of the Yorkville Group. This facility offers Bezant crucial working capital as it prepares to initiate regular copper sales, all while sidestepping the need for an immediate discounted equity placement. The terms of the loan are as follows:
- Type of Loan: Unsecured, non-convertible
- Interest Rate: 5% annually
- Repayment Schedule: Ten monthly instalments of £400,000 plus interest, beginning in January 2027
- Additional Incentive: Lender receives three-year warrants with a £3 million subscription value, exercisable at 0.16p per share
Executive chairman Colin Bird emphasized the importance of preserving shareholder value in making this financing decision. He noted that an immediate £4 million equity raise would likely lead to significant dilution, especially before the company’s cash-generating potential is fully realized in its valuation.
Bezant plans to meet the loan repayments primarily through projected cash flow. The financing will also facilitate the Phase II expansion, targeting increased copper production by 2027. Additionally, the funding will support resource development for Phase III, which aims for a minimum annual production capacity of 25,000 tonnes of contained copper.
This financial strategy not only supports immediate operational needs but also lays the groundwork for future growth, ensuring Bezant Resources is well-positioned to capitalize on its developing projects and market opportunities.
