BEZANT RESOURCES PLC

Earnings Release • Mar 29, 2016

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RNS Number : 2491T

Bezant Resources PLC

29 March 2016

29 March 2016

Bezant Resources Plc

("Bezant", the "Company" or, together with its subsidiaries, the "Group")

Interim Results for the six months ended 31 December 2015

Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, announces its unaudited interim results for the six months ended 31 December 2015. 

Highlights:

Corporate:

·      Group expenditure kept to a minimum with a group loss after tax of £265,000 (31 December 2014: £328,000)

o  Group expenditure remains low following the successful implementation of significant cost cutting initiatives introduced in 2014, including a reduction in Directors' and management fees, wages and other costs

o  Principal expenditure items were attributable to the Group's licence obligations

·      Approximately £1.5 million cash at bank at the period end (30 June 2015: £1.7 million)

·      Option entered into for the acquisition of interests in certain platinum and gold licences in Colombia

o  Option entered into to acquire 100 per cent. of Leeward Islands Exploration LLC ("Leeward") (the "Leeward Option"), which in turn holds options to acquire interests in certain licences covering highly prospective platinum and gold bearing areas in the Choco region in Colombia

o  US$50,000 upfront option fee paid for the Leeward Option and US$350,000 working capital loan facility provided to Leeward to be utilised for project expenses under Bezant's full supervision

·      £406,394 (before expenses) raised in December 2015 via a subscription for 16,587,500 new ordinary shares at a price of 2.45p (the "Subscription"), representing a premium of approximately 9 per cent. to the prior day's closing mid-market share price of 2.25p per ordinary share

o  Bezant's Chairman, Edward Nealon, invested £134,750 through the Subscription for 5,500,000 ordinary shares

o  Net proceeds of the Subscription utilised towards the acquisition, post period end, of Leeward following the exercise of the Leeward Option and general working capital purposes

Project portfolio:

·      Mankayan Copper-Gold Project, Philippines (the "Mankayan Project" or "Mankayan"):

o  Sale process affected by the adverse mining tax proposal made to the Philippines Government by a civil service body (the Mining Industry Coordinating Council) in 2014

o  Tax proposal has not yet been adopted, but the uncertainty created continues to affect the whole of the domestic mining industry in the Philippines

o  Philippine national elections scheduled for May 2016 could see the tax issues resolved and renewed interest in mining investments should a candidate who is pro-mining and foreign investment be elected

·      Eureka Copper-Gold Project, Argentina (the "Eureka Project" or "Eureka"):

o  Exploration activities and expenditure scaled back in order to focus on the sale of the Mankayan Project and potential near-term cash generative projects

o  Continuing to assess possible joint-venturing opportunities to move closer towards potential future production

Post Period End:

·      Exercise of option to acquire 100 per cent. of the share capital of Leeward in late January 2016

o  Leeward holds options to acquire, in aggregate, approximately 2,750 ha of highly prospective platinum and gold bearing licences in the Choco Department of Colombia

o  Project area contains near surface, alluvial deposit historically mined for platinum and gold

o  Identified as part of a search process for platinum projects located outside of Southern Africa with near term cash generation potential

o  Consideration comprised US$1,000,000 cash and the issue of 37,306,137 new ordinary shares in Bezant

·      The Company today announces that Laurence Read will assume the role of Executive Director with immediate effect, having previously held a non-executive board position

·      On 21 March 2016, Beaufort Securities Limited was appointed as the Company's sole broker

Edward Nealon, Chairman of Bezant, commented:

"The reporting period saw us aggressively scale back costs and pursue a re-focused strategy centred on achieving near term cash generation. In this regard, I would like to thank the team at Bezant for their valuable work in identifying and assessing the economic viability of a whole series of platinum assets with near term production potential.

"We have now successfully secured options over the Colombian platinum assets and if exercised in due course we shall seek to fast track such assets into production. As a Board, we increasingly believe that value in the prevailing difficult market conditions must be generated from revenues and, with our historic track record in platinum development and production, we look forward to potentially ultimately creating a low-cost mining operation located outside of South Africa.

"Through our work on Mankayan, we derived significant value from efficiently deploying capital and returned significant cash to shareholders in 2013. Our focus remains on driving returns for shareholders from our proven expertise and careful cost controls."

For further information, please contact:

Bernard Olivier Chief Executive Officer, Bezant Resources Plc     Laurence Read Executive Director / Communications Officer, Bezant Resources Plc                            James Harris / Matthew Chandler / James Dance Strand Hanson Limited (Nomad)                                                          Elliot Hance Beaufort Securities Limited (Broker)                                              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 7382 8300

Chairman's Statement

I have pleasure in presenting the Group's unaudited interim results for the six month period ended 31 December 2015. Reflecting our ongoing activities, the unaudited consolidated results for the six month period ended 31 December 2015 show a loss after tax of £265,000 (31 December 2014: £328,000). This represents a significant reduction in expenditure of approximately 20 per cent. compared to the equivalent period in the prior year and reflects our successful ongoing cost saving initiatives as previously reported. We are currently in the process of implementing additional cost savings, including a further reduction in Directors' fees and wages and other costs. The Group had approximately £1.5 million cash at bank at the period end (30 June 2015: £1.7 million) and remains well funded to continue its operational activities.

Platinum Projects, Colombia

Towards the end of the reporting period, the Company entered into an option agreement to acquire 100 per cent. of Leeward Islands Exploration LLC ("Leeward") (the "Leeward Option").  Leeward holds options (the "Project Options") to potentially acquire a 100 per cent. interest in licences covering 2,659 ha, and a 70 per cent. interest in a licence covering 91 ha in the Choco region in Colombia (the "Project Licences"). All the Project Licences have prospectivity for near-surface, alluvial, platinum and gold in an area historically mined using dredges. As part of its due diligence exercise, Bezant obtained a Colombian legal opinion regarding the validity of the Project Licences and the Project Options and the good standing of the local Colombian companies to which they have been granted.  

Bezant's Board has a track record of successfully developing platinum-gold metals ("PGM") projects outside of standard reef models, and I was personally involved in the early stages of founding both Aquarius Platinum plc and Sylvania Resources Limited.

Post period end, on 27 January 2016, Bezant announced that it had exercised the Leeward Option and was progressing with a series of work streams to assess the geology, mineralisation, metallurgy and mining profile of the Project Licences, with a view to exercising one or more of the Leeward group's existing options and, ultimately, creating a low cost platinum and gold production operation outside of South Africa. Prior to commencing exploration activities in relation to the Project Licences, in compliance with Colombian Law, Bezant is required to carry out certain consultation processes with local communities in the areas covered by the Project Licences and obtain the relevant environmental and related permits and approvals.

I am pleased to report that, with immediate effect, Mr Laurence Read has assumed the role of Executive Director, having previously served as a non-executive. Laurence will now directly support myself and Bernard Olivier in seeking to deliver a sustainable, inclusive, mining operation into future development. 

Whilst PGM prices remain depressed, Bezant's Board believes that significant pressure on major platinum sources and depleting stock-piles should enable Bezant to realise potentially significant margins from the successful future development of the Project Licences, should the Company elect to exercise the options held by Leeward going forwards.

I wish to reiterate what I said at the time of the Leeward Option being exercised: "What I really like about the Project Licences is the identifiable high concentrations of platinum, set against an established regional history of successful near surface dredge mining. Our objective is to determine whether enhanced dredge techniques and processes can be quickly and cost-effectively implemented, first of all to underpin the Company with respect to the future cash flow, then to be ready to take advantage of potential supply issues within the major global production regions."

I have been closely watching the PGM space for the last five years and I, and the remainder of the Board, remain very much of the opinion that the creation of a new platinum production portfolio, outside of South Africa and not deep underground, at this opportune time, could yield significant results.

Mankayan Project, Philippines

Discussions are ongoing with interested parties regarding the potential sale or joint venture of the Mankayan Project. However, as announced previously, the Mankayan sale process is being hampered by the proposed new Mining Tax regime in the Philippines. The new tax bill proposes levying a tax rate determined as the higher of either 10 per cent. of gross revenue or 55 per cent. of adjusted net mining revenue.

We continue to support the Chamber of Mines of the Philippines' and large local mining companies', such as Benguet Corporation's, active and vocal opposition to the proposal. The proposed new mining tax is in direct contrast with the current tax reforms in other parts of the Philippine economy, with the Government planning to impose a reduced 15 per cent. corporate income tax rate for 15 years, renewable for another 15 years, under a proposal to rationalise fiscal incentives to attract increased investment. The European Chamber of Commerce of the Philippines, for example, recently commented that it fully supports the Government's proposed lower income tax rate, which will help attract investment, but then also proceeded to criticise the mining fiscal regime bill proposal, stating that the Philippines runs the risk of failing to be a competitive destination for mining investment.

Eureka Project, Argentina

During 2014, following due consideration, the Board decided to reduce the Company's Argentinian work programme and its associated costs in order to better focus on the potential future sale or joint venture of Mankayan. Despite reducing the Eureka Project's exploration activities, the Board continues to believe that Eureka represents an undervalued asset. Located in a major copper-gold province in Argentina, Eureka has near surface mineralisation, which has historically supported basic mining operations, and the project therefore has significant potential for the development of a low cost future mining operation. We will continue to pursue cost-effective exploration and development options for Eureka.

Outlook

We are closely monitoring the political situation in the Philippines, particularly with regard to any clarity on the stabilisation of the tax regime. The Mankayan asset remains a world-class copper-gold asset, but the regional uncertainty created by the 50 per cent. tax proposal makes progressing negotiations extremely difficult for nearly all companies operating in the country. The elections to be held in May 2016 will be a key event and their outcome may influence a resolution to the matter.

As a Company, we have a clear view that value for resource companies must be derived from low capex, low opex operations. We have spent considerable time assessing the near surface platinum assets outside of South Africa and are delighted to have been able to secure the option over the Colombian Project Licences. On the basis we ultimately elect to exercise the Project Options, we will look to fast track production and assess mining techniques to recover metal from banks containing high concentrations of platinum. We think that our proposed low cost platinum production model, set against the sizeable cost base of South African miners and depleting stockpiles, should leave Bezant well positioned to take advantage of a future small, efficient production facility to deliver value to our shareholders and other stakeholders.

Mr Edward Nealon

Non-Executive Chairman

29 March 2016

Interim Financial Information of Bezant Resources Plc

The following interim financial information of Bezant Resources Plc is for the period from 1 July 2015 to 31 December 2015.  The interim financial information was approved by the Board of Directors on 29 March 2016.

Bezant Resources Plc

Consolidated Statement of Comprehensive Income

For the period ended 31 December 2015

	Unaudited Period ended 31 December 2015 £'000		Unaudited Period ended 31 December 2014 £'000		Audited Year ended 30 June 2015 £'000
Continuing operations
Group revenue	-		-		-
Cost of sales	-		-		-
Gross profit/(loss)	-		-		-
Depreciation	(3)		(5)		(10)
Other administrative expenses	(189)		(232)		(551)
Total administrative expenses	(192)		(237)		(561)
Group operating loss	(192)		(237)		(561)
Interest receivable	1		1		2
Share of Associates' loss	(74)		(92)		(124)
Loss before taxation	(265)		(328)		(683)
Taxation	-		-		-
Loss for the period	(265)		(328)		(683)
Attributable to: Equity holders of the Company	(265)		(328)		(683)
Other comprehensive income:
Foreign currency reserve movement	160		227		192
Other comprehensive income for the period	160		227		192
Total comprehensive expense for the period attributable to equity holders of the Company	(105)		(101)		(491)
Loss per share (pence)
Basic and Diluted (note 2)	(0.29p)		(0.40p)		(0.82p)

Bezant Resources Plc

Consolidated Statement of Changes in Equity

For the period ended 31 December 2015

	Share Capital £'000	Share Premium £'000	Other Reserves £'000	Retained Losses £'000	Total Equity £'000
Unaudited - period ended 31 December 2015
Balance at 1 July 2015	166	31,053	549	(17,470)	14,298
Current period loss	-	-		(265)	(265)
Foreign currency reserve	-	-	160	-	160
Total comprehensive expense for the period	-	-	160	(265)	(105)
Share issue	33	373	-	-	406
Share issue cost	-	(5)	-	-	(5)
Balance at 31 December 2015	199	31,421	709	(17,735)	14,594

Unaudited - period ended 31 December 2014
Balance at 1 July 2014	166	31,053	357	(16,787)		14,789
Current period loss	-	-	-	(328)		(328)
Foreign currency reserve	-	-	227	-		227
Total comprehensive expense for the period	-	-	227	(328)		(101)
Balance at 31 December 2014	166	31,053	584	(17,115)		14,688

Audited - year ended 30 June 2015
Balance at 1 July 2014	166	31,053	357	(16,787)	14,789
Current year loss	-	-	-	(683)	(683)
Foreign currency reserve	-	-	192	-	192
Total comprehensive expense for the period	-	-	192	(683)	(491)
Balance at 30 June 2015	166	31,053	549	(17,470)	14,298

Bezant Resources Plc

Consolidated Balance Sheet

As at 31 December 2015

	Notes	Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000
ASSETS
Non-current assets
Investment in associates	4	7,943		7,720		7,753
Plant and equipment		59		66		61
Exploration and evaluation assets	5	4,791		4,791		4,788
		12,793		12,577		12,602
Current assets
Cash and cash equivalents		1,550		2,079		1,679
Leeward option	6	33		-		-
Trade and other receivables	7	290		73		74
		1,873		2,152		1,753
Total assets		14,666		14,729		14,355
LIABILITIES
Current liabilities
Trade and other payables	8	72		41		57
		72		41		57
Total liabilities		72		41		57
Net assets		14,594		14,688		14,298
EQUITY
Share capital	9	199		166		166
Share premium	9	31,421		31,053		31,053
Other reserves	10	709		584		549
Retained losses		(17,735)		(17,115)		(17,470)
Shareholders' equity		14,594		14,688		14,298

Bezant Resources Plc

Consolidated Statement of Cash Flows

For the period ended 31 December 2015

	Notes	Unaudited Period ended 31 December 2015 £'000		Unaudited Period ended 31 December 2014 £'000		Audited Year ended 30 June 2015 £'000
Net cash outflow from  operating activities	11	(288)		(417)		(726)
Cash flows from  investing activities
Loans to associates		(94)		(130)		(225)
Option fee paid		(33)		-		-
Loan to Leeward		(197)		-		-
Interest received		1		1		2
Other income		7		12		29
Net cash outflow from  investing activities		(316)		(117)		(194)
Cash flows from  financing activities
Net proceeds from issue of share capital		401		-		-
Net cash inflow from financing  activities		401		-		-
Decrease in cash and cash  equivalents		(203)		(534)		(920)
Cash and cash equivalents at  beginning of period		1,679		2,435		2,435
Foreign exchange movement		74		178		164
Cash and cash equivalents at end  of period		1,550		2,079		1,679

Bezant Resources Plc

Notes to the Interim Financial Information

For the period ended 31 December 2015

1.         Accounting policies

The principal accounting policies applied in the preparation of these interim financial statements are set out below. These accounting policies have been consistently applied to all the periods presented, unless otherwise stated below and are the policies which the Group expects to adopt in its next annual report and are consistent with the policies adopted in the consolidated financial statements for the year ended 30 June 2015.

1.1        Basis of preparation

This interim report, which incorporates the financial information of the Company and its subsidiary undertakings (the "Group"), has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS"), including IAS 34 'Interim Financial Reporting' and IFRS 6 'Exploration for and Evaluation of Mineral Resources', as adopted by the European Union ("EU").

These interim results for the six months ended 31 December 2015 are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The financial statements for the year ended 30 June 2015 have been delivered to the Registrar of Companies and the auditors' report on those financial statements was unqualified and did not contain a statement made under Section 498(2) or Section 498(3) of the Companies Act 2006.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiary undertakings and have been prepared using the principles of acquisition accounting, which includes the results of the subsidiaries from their dates of acquisition.

All intra-group transactions, income, expenses and balances are eliminated fully on consolidation.

A subsidiary undertaking is excluded from the consolidation where the interest in the subsidiary undertaking is held exclusively with a view to subsequent resale and the subsidiary undertaking has not previously been consolidated in the consolidated accounts prepared by the parent undertaking.

Business combination

On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. discount on acquisition) is credited to profit and loss in the period of acquisition. The interest of minority shareholders is stated at the minority's proportion of the fair values of the assets and liabilities recognised. Subsequently, any losses applicable to the minority interest in excess of the minority interest are allocated against the interests of the parent. 

Investment in associate companies is accounted for using the equity method.

1.2        Exploration, evaluation and development expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward as assets to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves.  Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Costs of site restoration are provided when an obligating event occurs from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and the rehabilitation of the site in accordance with clauses of the mining permits.  Such costs have been determined using estimates of future costs, current legal requirements and technology on a discounted basis. Any changes in the estimates for the costs concerned are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have been determined on the basis that restoration will be completed within one year of abandoning the site.

1.3        Share based payments

The Company has historically made share-based payments to certain directors and advisers by way of the issue of share options. The fair value of these payments is calculated by the Company using the Black Scholes option pricing model. The expense is recognised on a straight line basis over the period from the date of award to the date of vesting, based on the Company's best estimate of shares that will eventually vest.

1.4        Foreign currency transactions and balances

(i) Functional and presentational currency

Items included in the Group's financial statements are measured using Pounds Sterling ("£"), which is the currency of the primary economic environment in which the Group operates ("the functional currency").  The financial statements are presented in Pounds Sterling, which is the functional currency of the Company and is the Group's presentational currency.

The individual financial statements of each Group company are presented in the functional currency of the primary economic environment in which it operates.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

Transactions in the accounts of individual Group companies are recorded at the rate of exchange ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rates ruling at the balance sheet date.  All differences are taken to the income statement.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised as income or as expenses in the period in which the operation is disposed of.

2.         Loss per share

The basic loss per ordinary share has been calculated using the loss for the period of £265,000 (31 December 2014: £328,000; 30 June 2015: £683,000) and the weighted average number of ordinary shares in issue of 92,437,573 (31 December 2014: 82,939,525; 30 June 2015: 82,939,525).

The diluted loss per share and the basic loss per share are recorded as the same amount as the conversion of share options decreases the basic loss per share, thus being anti-dilutive.

3.	Segment reporting
	For the purposes of segmental information, the operations of the Group are focused in three geographical segments, namely: the UK, the Philippines and Argentina and comprise one class of business: the exploration, evaluation and development of mineral resources. The UK is used for the administration of the Company. The Group's operating loss arose from its operations in the UK, the Philippines and Argentina.

	Segment reporting
	For the six month period ended 31 December 2015
			UK	Philippines		Argentina	Total
			£'000	£'000		£'000	£'000
	Consolidated operating loss		(176)	(74)		(15)	(265)
	Included in the consolidated operating loss are the following income/(expense) items:
	Foreign currency gain		83	-		1	84
	Interest received		1	-		-	1
	Depreciation		(1)	-		(2)	(3)
	Total Assets		1,804	8,002		4,860	14,666
	Total Liabilities		(68)	-		(4)	(72)

	Segment reporting
		For the six month period ended 31 December 2014
				UK	Philippines		Argentina	Total
				£'000	£'000		£'000	£'000
		Consolidated operating loss		(216)	(92)		(20)	(328)
		Included in the consolidated operating loss are the following income/(expense) items:
		Foreign currency gain		176	-		-	176
		Interest received		1	-		-	1
		Depreciation		(1)	-		(4)	(5)
		Total Assets		2,083	7,773		4,873	14,729
		Total Liabilities		(36)	-		(5)	(41)

	Segment reporting
	For the year ended 30 June 2015
			UK	Philippines		Argentina	Total
			£'000	£'000		£'000	£'000
	Consolidated operating loss		(522)	(117)		(44)	(683)
	Included in the consolidated operating loss are the following income/(expense) items:
	Foreign currency gain		156	8		-	164
	Interest received		2	-		-	2
	Depreciation		(3)	-		(7)	(10)
	Total Assets		1,659	7,812		4,884	14,355
	Total Liabilities		(53)	-		(4)	(57)

4.         Investments in associates accounted for using the equity method of accounting

Group

	Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000
Investment in Crescent Mining and Development Corporation	5,030		5,136		5,104
Loan due from Crescent Mining and Development Corporation	2,913		2,584		2,649
	7,943		7,720		7,753

5.         Exploration and evaluation assets

Group

	Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000
Opening balance	4,788		4,791		4,791
E&E costs incurred	3		-		-
	4,791		4,791		4,791
E&E costs expensed	-		-		(3)
Deferred exploration and evaluation assets	4,791		4,791		4,788

6.         Leeward option

Group

	Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000
Leeward option	33		-		-
	33		-		-

Bezant entered into an agreement (the "Option Agreement") for a fee of US$50,000 with the shareholders of Leeward Islands Exploration LLC ("Leeward").  The Option Agreement afforded the Company the option to acquire 100 per cent. of Leeward's issued share capital (the "Leeward Option".  The Leeward Option was exercised post period end (refer to note 13).

7.         Trade and other receivables

Group

	Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000
VAT refundable	20		9		7
Leeward loan*	203		-		-
Other debtors	67		62		67
Prepayments	-		2		-
	290		73		74

* Under the terms of the Option Agreement entered into with the shareholders of Leeward, Bezant provided Leeward with a US$350,000 working capital loan (drawn down as to US$300,000 as at 31 December 2015) which is being utilised for project expenses under the supervision of the Company. 

8.         Trade and other payables

Group

	Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000
Trade payables	39		26		3
Other payables & accruals	33		15		54
	72		41		57

9.         Share capital and options

Group

Class	Nominal value		Unaudited 31 December 2015 Number		Unaudited 31 December 2014 Number		Audited 30 June 2015 Number
Authorised
Ordinary	0.2p		5,000,000,000		5,000,000,000		5,000,000,000
Allotted, called up and fully paid
Ordinary	0.2p		99,527,025		82,939,525		82,939,525

In December 2015, the Company raised, in aggregate, £406,394 before expenses, via a subscription by certain new and existing investors for 16,587,500 new ordinary shares of 0.2 pence each in the capital of Bezant.

Class	Nominal value		Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000

Allotted, called up and fully paid
Ordinary	0.2p			199		166		166
Share premium account				31,421		31,053		31,053

Share options

Details of share options outstanding as at 31 December 2015 are as follows:

	Unaudited 31 December 2015 Number		Unaudited 31 December 2014 Number		Audited 30 June 2015 Number
Opening balance	2,397,800		3,641,892		3,641,892
Forfeited during the period	-		-		(1,244,092)
	2,397,800		3,641,892		2,397,800

10.        Other reserves

Group

(i) Share-based payment reserve	Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000
At beginning and end of period	265		265		265

(ii) Foreign currency reserve
Opening balance	284		92		92
Movement in reserve	160		227		192
Closing balance	444		319		284

Other reserves
(i) Share-based payment reserve	265		265		265
(ii) Foreign currency reserve	444		319		284
Total reserves	709		584		549

11.        Reconciliation of operating loss to net cash outflow from operating activities

	Unaudited 31 December 2015 £'000		Unaudited 31 December 2014 £'000		Audited 30 June 2015 £'000
Group operating loss	(192)		(237)		(561)
Depreciation	3		5		10
Foreign exchange gain	(84)		(176)		(164)
VAT refunds received	(7)		(12)		(29)
Increase in trade and other receivables	(23)		(7)		(8)
Increase in trade and other payables	15		10		26
Net cash outflow from operating activities	(288)		(417)		(726)

12.        Commitments

The Company has committed to providing continued financial support to its associate in the Philippines and has indicated that it will not call upon its loan advances to that entity before 31 December 2016.

13.        Subsequent events

On 26 January 2016, the Company exercised its option to acquire 100 per cent. of the share capital of Leeward.  Leeward holds options to potentially acquire a 100 per cent. interest in licences covering 2,659 ha and a 70 per cent. interest in a licence covering 91 ha. All the licences have prospectivity for near-surface, alluvial, platinum and gold and are located in the Choco Department of Colombia, in an area historically mined using dredges.

Pursuant to the terms of the Option Agreement, Bezant paid US$1,000,000 cash consideration to the shareholders of Leeward from its existing cash resources and in addition issued 37,306,137 new ordinary shares of £0.002 each in the capital of Bezant.

14.        Contingent liabilities

Litigation is ongoing against the Group relating to an historic alleged claim for a 40% interest in the Mankayan Project, as disclosed in June 2007 at the time of the Group's acquisition of Asean Copper Investments Limited. The information usually required by IAS 37 is not disclosed, because the board of directors believe that to do so would seriously prejudice the outcome of the case. The board of directors are confident that the Group will successfully defend this claim.

15.        Availability of Interim Report

A copy of these interim results will be available from the Company's registered office during normal business hours on any weekday at Level 6, Quadrant House, 4 Thomas More Square, London E1W 1YW and can also be downloaded from the Company's website at www.bezantresources.com. Bezant Resources Plc is registered in England and Wales with company number 02918391.      

INDEPENDENT REVIEW REPORT BY THE AUDITORS

TO BEZANT RESOURCES PLC

Introduction

We have been engaged by the Company to review the condensed financial statements in the interim results for the six months ended 31 December 2015, which comprise the Group Statement of Comprehensive Income, the Group Statement of Changes in Equity, the Group Balance Sheet, the Group Statement of Cash Flows and the related notes.  We have read the other information contained in the interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' Responsibilities

The interim results are the responsibility of, and have been approved by, the directors. The directors are responsible for preparing the interim results in accordance with the AIM Rules for Companies.

As disclosed in note 1.1, the annual financial statements of the Group will be prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in the interim results has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim results based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed financial statements in the interim results for the six months ended 31 December 2015 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.

UHY Hacker Young LLP

Chartered Accountants

Registered Auditors

Quadrant House

4 Thomas More Square

London

E1W 1YW

29 March 2016

This information is provided by RNS

The company news service from the London Stock Exchange

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