Bezant Resources has signed a conditional transaction agreement to dispose 80% interest in the Mankayan copper-gold project in the Philippines to Singapore-based Mining and Minerals Industries Holding (MMIH).

MMIH previously signed a separate agreement to vend certain mining assets in the Philippines to China Hongxing Sports (CHX), which upon successful completion, would constitute a reverse takeover by CHX under the listing rules of the SGX.

Under the terms of the agreement, MMIH subsidiary MMJV will acquire an 80% interest in Asean Copper Investments, the special purpose vehicle through which Bezant owns its interest in the Mankayan project.

Asean Copper owns 40% shareholding in Crescent Mining and Development Corporation (CMDC) incorporated in the Philippines and is the sole holder of mineral production sharing agreement (MPSA) No 057-96-CAR in the Mankayan project.

The company holds 40% shareholding in Bezant Holdings incorporated in the Philippines, as well as the balance 60% interest in CMDC and has an option to acquire the remaining 60% of Bezant Holdings.

Bezant CEO Laurence Read said:  “If Bezant’s shareholders duly approve the Proposed Transaction at the requisite general meeting, which will be convened shortly, we look forward to working with MMIH to progress operations and new exploration opportunities at Mankayan as MMIH continues its preparations in respect of the proposed listing of MMJV on the Singapore Stock Exchange in the RTO Transaction.”

Bezant said that it plans to sell its interest to MMIH for S$10m ($7.24m) in equity and approximately £5m ($6.03m) in funding commitments for the project.

If the transaction runs successful, MMIH will fund up to $2.25m for work programmes under the original MPSA, and a further S$5.5m ($3.98m) for a definitive feasibility study (DFS), subject to the approval of relevant Philippine authorities.