27 May 2015
Bezant Resources Plc
("Bezant" or the "Company")
Operational Review & Strategic Update
Highlights:
· Strong cash position maintained with total group cash reserves of approximately £1.9 million as of March 2015
· Further expenditure controls implemented, including:
o 30% reduction in all Board salaries and benefits
o 30% reduction in group operational staff salaries
· Mankayan sales process continues to be impacted by uncertainty over the Philippines' tax regime
o Negotiations with interested parties continue
Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines and Argentina, announces an update following an annual review of its operations and the global natural resources market by the Board. After due consideration, the Board has recently implemented a series of initiatives primarily relating to cost controls. The key changes are centred on reductions in staff salaries across all levels of the Company. Each of the Company's directors and all of the group's operational staff have agreed to a 30 per cent. reduction in their respective fees, salaries and benefits, back-dated to be effective from 31 March 2015. The latest measures build on the approximate 59 per cent. reduction in expenditure achieved in H2 2014, versus H2 2013, as set out in the Company's interim results announcement of 30 March 2015.
Bezant is progressing negotiations with a series of interested parties over the potential sale or partnership of its Mankayan copper-gold project in the Philippines. The sale process continues to be overshadowed by uncertainty relating to a mining tax proposal made to the Philippines Government in 2014, by a civil service body, recommending an increase to a 50 per cent. levy. In order for Bezant to be able to negotiate from a position of strength and retain strategic options for shareholder growth going forward, the Board recognises that the Company's strong cash position must be maintained as far as possible, with total group cash reserves of approximately £1.9 million held as of March 2015.
Bernard Olivier, Chief Executive Officer of Bezant, commented:
"As we continue to look to deliver further value for Bezant's shareholders, I believe that maintaining a strong cash position is essential. This sizeable reduction in fees, salaries and benefits will assist us in maintaining the group's cash reserves whilst we continue discussions with respect to our Mankayan Project in the Philippines, despite the ongoing uncertainty in respect of the country's tax regime. In the current markets, our priority must be to avoid unnecessary dilution for shareholders and maintain strategic options for the Company going forward."
For further information, please contact:
Bernard Olivier Chief Executive Officer, Bezant Resources Plc Laurence Read Non-Executive Director, Bezant Resources Plc James Harris / Matthew Chandler / James Dance Strand Hanson Limited James Maxwell / Jen Boorer N+1 Singer or visit http://www.bezantresources.com |
Tel: +61 40 894 8182 Tel: +44 (0)20 3289 9923 Tel: +44 (0)20 7409 3494 Tel: +44 (0)20 7496 3000 |
