1 Jul 2010 07:00
1 July 2010
Bellzone Mining plc
("Bellzone" or the "Company")
China International Fund Agreement Update
Bellzone is pleased to announce that substantial progress has been made in negotiating the formal agreement, as announced in the Binding MOU on 24 May 2010, with CIF and a number of key terms and principles have been agreed. Given the complexities of defining the terms and principles of the offtake, both parties have agreed to extend the target date for signing the definitive agreement to mid August 2010.
Nik Zuks, Managing Director of Bellzone Mining plc, commented: "Both parties are very pleased to have progressed as far as they have in the time since signing the Binding MOU. The principles and fundamentals of the Definitive Agreement that are being covered are varied and complex. The teams have been thorough and very professional in the work done to date. The significant progress illustrates the positive intent by all parties to move the project forward quickly, but with the due care and diligence it deserves."
Bellzone also announces that the Company's Nominated Adviser and Joint Broker has undertaken a change of name from Canaccord Adams Limited to Canaccord Genuity Limited following the acquisition by its parent company, Canaccord Financial Inc., of Genuity Capital Markets.
Enquiries:
| Bellzone Mining plc Nik Zuks |
+61 439 420 893 |
|
Canaccord Genuity Limited Nominated Adviser and Joint Broker to Bellzone Andrew Chubb/Tarica Mpinga |
+44 (0)20 7050 6500 |
|
Renaissance Capital Limited Joint Broker to Bellzone Simon Matthews/Thomas Beattie |
+44 (0)20 7367 7777 |
|
Conduit PR Charlie Geller /Jos Simson |
+44 (0)20 7429 6604 / +44 (0) 7528 233 383 |
Bellzone Mining plc
Bellzone Mining plc is an iron-ore exploration and development company with assets in Guinea, West Africa. The Company's flagship project, the Kalia Iron Project, is underpinned by its 100% owned Kalia iron deposit which has a maiden inferred magnetite JORC resource of 2.4 billion tonnes, located on the Kalia I prospect. Previous drilling results and internal estimates indicate that the Kalia iron deposit has the potential to host more than 13 billion tonnes of magnetite ore and 2.9 billion tonnes of surface oxide. Exploration work continues to further delineate and increase the resources at Kalia with the SEIA and EIA studies already underway in support of the Bankable Feasibility Study.
Bellzone intends to develop a 50 million tonnes per annum ('mtpa') iron ore operation through a two staged approach. First production is expected in 2014 at 20mtpa which is expected to fund the expansion to 50mtpa schedule for completion in 2018.
On 24 May 2010, Bellzone reached a Binding Memorandum of Understanding ('MOU') with China International Fund ('CIF') with regards to the financing of the infrastructure required for the Kalia Iron Project.
The Binding MOU is subject to the parties agreeing and executing definitive agreements for the infrastructure company, joint venture agreement and off-take agreement.
Bellzone is listed on the AIM market of the London Stock Exchange under the ticker 'BZM'.
www.bellzone.com.au