A joint venture agreement struck in April 2020 envisaged two US$125,000 payments scheduled for August and December respectively, but it is now agreed that Bezant will make a single issue of shares to KPZ.
Bezant is issuing 76.9mln new shares, priced at 0.25p each, to KPZ shareholders. The pricing is based on the three-day volume-weighted price (VWAP) as of November 5, 2020.
“I would like to thank the KPZ shareholders for their confidence in accepting payment in shares which even more closely aligns our mutual interests in relation to the Kalengwa project, we look forward to continuing to work with our partners, and I look forward to updating shareholders in due course on our work on the project,” said Colin Bird, Bezant executive chairman in a statement.
The company noted that the new shares would be effective on or around November 13.
Last month, Bezant responded to media reports in Zambia by telling investors that it had not been served any legal proceedings or restraint orders in relation to Kalengwa.
The media reports had questioned the legal ownership of the Large Scale Exploration Licence relating to Kalengwa, in which Bezant holds a 30% interest in and acts as operator.
Bezant acts as operator of the project and it also has a 30% interest in the project.