20 Feb 2014 14:00
20 February 2014
Bellzone Mining plc
("Bellzone")
Forécariah Joint Venture and Update on Financing
Bellzone Mining plc (AIM: BZM) issues the following update to shareholders on developments with the Forécariah Joint Venture ("JV") in Guinea. The JV is 50% owned by Bellzone through Coastal Iron Developments Limited, a wholly owned subsidiary of Bellzone, which holds an investment in the Singapore based Forécariah Holdings PTE LTD.
Bellzone has been informed that a legal case has been brought against the JV in Guinea by a former contractor alleging an amount of $6.1 million is outstanding for construction works contracted with the Singapore based Forécariah Holdings PTE LTD. The legal case is being vigorously defended by the JV in Guinea and does not impact on Bellzone or its Guinea-based subsidiaries.
The JV is capable of settling the liability should the legal case be decided against it. Bellzone maintains the position that the JV will remain self-sustaining from a cash perspective.
The JV has been operating successfully in 2014 and has shipped two cargoes of iron ore this year, with a third cargo ready to be loaded once a ship arrives in port.
In line with previous announcements, the Company remains in discussions with both short and long term providers of finance and the Company's cash position remains sufficient to continue operations into Q2 2014. The Company will provide further updates to the market as to its financial position and the status of financing negotiations as appropriate.
Glenn Baldwin, Chief Executive Officer, commented:
"The response to the Court action is being managed by the JV. We are obviously interested in the outcome but believe Bellzone itself is not impacted by the action. Our efforts remain focused on finalizing funding for our flagship 100% owned Kalia project, with discussions in this regard progressing well".
Enquiries:
Bellzone Mining plc
Peta Baldwin, Corporate Affairs +44 (0) 1534 513 500
Investec Securities
Nominated Advisor and Broker
Chris Sim / Jeremy Wrathall / Jeremy Ellis +44 (0) 207 597 5970
Bell Pottinger
Financial Public and Investor Relations
Daniel Thöle +44 (0) 207 861 3232
About Bellzone Mining plc
AIM-listed Bellzone Mining plc ("Bellzone") is an iron ore producer and mineral developer focused on the Republic of Guinea, West Africa.
Kalia is Bellzone's flagship project, a 100% owned, high-value asset with JORC-compliant resources of 5.63 billion tonnes. According to the independent Bankable Feasibility Study, Phase 1 of the project has a projected 7 million dry tonnes of production at a saleable grade of 58% iron content per annum. Kalia has been granted all necessary mining permits for its concession, and the transport corridor on which the project is located has been declared a project of national interest by the Guinean government.
Forécariah is a 50:50 joint venture between Bellzone and China International Fund. Bellzone has a strong relationship with the Guinean government, having produced the first iron ore from the country in decades from Forécariah in 2012.
Bellzone's wider portfolio includes the rights to explore for nickel, copper, cobalt, manganese, platinum and chromium in a prospecting area of over 2,000km2, including the Sadeka nickel and copper project.
Bellzone is committed to operating responsibly, by minimising its environmental impact and supporting local communities. For more information, visit http://www.bellzone.com/