Bezant Resources has secured a £4 million financing facility to support copper production and expansion at its Hope and Gorob project in Namibia, where the company has begun producing copper concentrate and expects to make its first shipment in November 2026.
The London-listed company announced that it had entered into a financing agreement with US-based institutional investor YA II PN Ltd, managed by Yorkville Advisors Global, as it moves towards generating revenue from its Namibian operations.
The financing comes at a critical stage for Hope and Gorob, with Bezant seeking to establish consistent copper concentrate production, regular shipments and a reliable flow of sales income while preparing to increase output during 2027.
The company plans to use part of the funding to support its Phase II expansion, which is expected to increase annual copper production next year, while advancing resource development work needed for a larger Phase III operation.
Its longer-term ambition is to establish a minimum annual production capacity of 25,000 tonnes of contained copper through the planned expansions, although Bezant has not provided a timetable for achieving that target.
Bezant executive chairman Colin Bird said the financing would allow the company to continue developing its operations without immediately raising additional capital through a conventional share placement.
“The £4 million Yorkville Facility represents an important addition to Bezant’s financial resources at a time when the Company is moving into a new phase of its development,” Bird said.
“An important consideration in selecting this financing structure was the preservation of shareholder value.”
He said raising the equivalent amount through an immediate share placement, before the company’s operations had demonstrated their cash-generating potential, could significantly dilute existing shareholders’ interests.
The facility has been structured as an unsecured loan carrying annual interest of 5%, with repayment scheduled over 10 monthly instalments of £400,000 each, beginning on 15 January 2027.
The final repayment is due on 15 October 2027, meaning Bezant will have to establish sufficient cash flow or access other funding sources to meet its obligations as Hope and Gorob moves through its early production stages.
Although the gross financing amounts to £4 million, the company will receive less after deductions, including a 6% non-refundable upfront fee and a £20,000 structuring and due diligence fee. These deductions total £260,000, leaving approximately £3.74 million before any other costs.
The financing also includes warrants with an aggregate subscription value of £3 million, exercisable at 0.16 pence per share over three years. The warrants could result in the issuance of approximately 1.875 billion additional shares if exercised in full.
Bezant has also agreed to establish an at-the-market equity financing arrangement within 15 business days, providing another potential source of capital should additional funding become necessary.
Despite the loan structure being intended to avoid an immediate discounted share placement, the warrants and supplementary equity facility mean that future shareholder dilution remains possible.
The company’s repayment strategy depends primarily on projected cash flow, including potential proceeds from warrant exercises, making the timing of copper shipments and sales receipts particularly important.
At Hope and Gorob, copper concentrate production has already commenced, marking the project’s transition from development towards commercial operations.
The company is now concentrating on establishing consistent production volumes and regular shipments, with the first consignment expected to leave Namibia next month.
The announcement did not disclose the volume of concentrate currently being produced, the expected tonnage of the first shipment, the anticipated sales value or the identity of the intended buyer.
These figures will be important in assessing the project’s ability to generate sufficient revenue to support operating expenditure and the company’s financing commitments.
Bezant previously reported that copper processing at Hope and Gorob was taking place through the Tsoaxaub processing plant, with production expected to increase progressively as operations developed.
The company intends to use its initial production base to support further development across the wider Hope and Gorob licence areas, where it believes additional mineral resources could sustain a significantly larger operation.
The Phase II expansion is expected to contribute additional copper production during 2027, while the accompanying resource development programme will seek to increase the project’s Mineral Resource Estimate and provide the geological basis for Phase III.
Bird said the company’s ambitions extended considerably beyond the start of concentrate production.
“Our ambitions extend well beyond initial production. Phase II and Phase III are targeting a minimum annual production capacity of 25,000 tonnes of contained copper, demonstrating the scale of the opportunity we are working towards.”
The 25,000-tonne figure represents a future production-capacity target rather than an established production rate, and the company has yet to disclose the capital expenditure, development schedule or additional resources required to achieve it.
Bezant believes favourable conditions in the international copper market could support its expansion plans, pointing to supply constraints at existing mines and growing demand associated with electricity infrastructure, renewable energy, electrification and data centres.
However, the immediate test for the company will be whether Hope and Gorob can move from initial concentrate production to sustained commercial sales.
With the first shipment expected in November and loan repayments beginning in January, Bezant faces a relatively short period in which to establish regular production and begin converting concentrate into cash receipts.
The company’s progress over the coming months will therefore be measured not only by the volume of copper produced but also by its ability to secure regular shipments, generate sales revenue and finance the next stages of development.
Bird said the company’s focus was now on turning its operational progress into financial returns.
“We now have the financial flexibility to support our immediate requirements, copper concentrate production has commenced, and the longer-term opportunity at Hope and Gorob remains substantial. Our focus is on converting these advantages into cash generation and shareholder value.”
