27 Oct 2010 07:00
27 October 2010
Bellzone Mining plc
("Bellzone" or the "Company")
Corporate Update
Appointment of Bank of America Merrill Lynch as Financial Advisor
Bellzone Mining plc (AIM: BZM) is pleased to announce the appointment of Bank of America Merrill Lynch ("BofAML") as a Financial Advisor to the Company.
The appointment is in addition to the Company's appointed nominated adviser and joint broker, Canaccord Genuity Limited, and Renaissance Capital Limited, the Company's joint broker.
BofAML will provide the Company with financial advice, a further point of market access and assistance with the review, development and implementation of corporate strategies as the Company enters the development and project financing phase at its Kalia Iron Mine in Guinea.
Guinea
As widely reported, the national democratic elections in Guinea scheduled for 24 October 2010 have been postponed. The delay follows the appointment last week of General Siaka Toumani Sangare of Mali as Head of the Independent Electoral Commission. A new date has yet to be announced but the delay is primarily to ensure Guinea's readiness from a logistics perspective to hold the final round in the election process in a fully transparent and democratic manner. The delay has been fully supported by the final two candidates as well as the current interim leader.
Bellzone is fully committed to the development of its Kalia Iron Mine and continues to receive support from the government at all levels, all of whom recognise the economic and infrastructure benefits the project will have for the people of Guinea. The support from the government was further demonstrated with the securing of Bellzone's Mining Convention and exclusive infrastructure development rights written into law by Presidential Decree as announced on 2 September 2010.
Nik Zuks, Managing Director of Bellzone Mining plc, commented: "I am pleased to announce the appointment of Bank of America Merrill Lynch to Bellzone's roster of advisors. Bank of America Merrill Lynch will add to our financial expertise and market coverage as we evolve as a company and move towards the next development phase of our 3.74 billion tonne Kalia Iron Mine in Guinea.
"With our mining and infrastructure permits enshrined in Guinea law together with today's appointment of BofAML, Bellzone is well positioned for future growth and has an excellent team of financial advisors to guide the Company on all aspects of international financing and West African, large bulk commodity project development."
Enquiries:
Bellzone Mining plc Graham Fyfe/Terry Larkan |
+61 439 931 708/ +61 404 041 083 end_of_the_skype_highlighting |
Canaccord Genuity Limited Nominated Adviser and Joint Broker to Bellzone Andrew Chubb/Tarica Mpinga
|
+44 (0)20 7050 6500 end_of_the_skype_highlighting |
Renaissance Capital Limited Joint Broker to Bellzone Simon Matthews/Thomas Beattie
Bank of America Merrill Lynch Financial Advisor to Bellzone Omar Davis
|
+44 (0)20 7367 7777
+44 (0) 207 628 1000
end_of_the_skype_highlighting |
Conduit PR Jos Simson/Paul Youens |
+44 (0)20 7429 6603 begin_of_the_skype_highlighting +44 (0)7899 870 450 begin_of_the_skype_highlighting end_of_the_skype_highlightingend_of_the_skype_highlighting |
Bellzone Mining plc
Bellzone Mining plc is an exploration and resource development company with iron ore and nickel / copper permits in the Republic of Guinea, West Africa.
The Company's flagship project, the Kalia Iron Mine has a JORC resource of 3.74 billion tonnes, located on the Kalia I prospect. Drilling results and internal estimates indicate that Kalia Prospect has the potential to host more than 10 billion tonnes of magnetite and 2.9 billion tonnes of oxide at surface.
Exploration work continues to further define the potential at Kalia I on both the magnetite and oxide at surface.
Bellzone is committed to the staged development of the Kalia Iron Project, which includes a 50mtpa iron ore facility, rail and port, with initial production scheduled in 2014. Stage one is planned to bring online 20mtpa direct shipping ore ('DSO') capacity in 2014 and a 10mtpa magnetite concentrator in 2015. Stage two increasing the DSO output to 30mtpa in 2017 and doubling the concentrate capacity to 20mtpa by 2018.
Bellzone signed an Infrastructure Accord with the Republic of Guinea giving the Company exclusive rights to the designated port and rail areas for purposes of conducting studies for the development of the infrastructure leading to the signing of a convention and concession. The infrastructure forms a key part of the Guinea Government's infrastructure strategy and will support the development of iron ore, bauxite and other minerals in Guinea through its availability for 3rd party use.
On 2 August 2010, Bellzone signed definitive agreements with China International Fund ('CIF'). CIF will finance and develop the rail and port infrastructure and offer a finance package to Bellzone for the development of the Kalia Mine in exchange for the first right to purchase 100% of the off-take of the Kalia Mine at market price.
An exploration programme is currently underway at the Forecariah Iron Permits that lie between 40 and 80kms from the Guinea coast. Bellzone and CIF will jointly develop these permits which are prospective for oxide and magnetite. The oxide has the potential to deliver cash flow from a Direct Shipping Ore project in the short term.
Bellzone has competed an intensive mapping and surface sampling programme and has defined highly prospective drilling targets at its Sadeka Nickel/Copper Project and will commence a drilling programme on these targets in Q4 2010.