14 Jun 2010 07:00
14 June 2010
Bellzone Mining plc
("Bellzone" or the "Company")
Update on Binding MOU with China International Fund
·; Formation of new company, Kalia Horizons Minerals Pte Ltd ('Kalia Horizons'), for the development of the infrastructure required for the Kalia Iron Project, Guinea
·; Kalia Horizons receives US$40 million from CIF to fund the infrastructure feasibility study
Bellzone Mining plc (AIM: BZM), the iron ore company developing the 2.4 billion tonne JORC magnetite Kalia Iron Project along the Company estimated 13 billion tonne Kalia magnetite deposit in Guinea, West Africa, is pleased to provide an update on the binding memorandum of understanding ('MOU') with China International Fund Limited ('CIF') announced on 24 May 2010.
As per the terms of the Binding MOU, CIF has incorporated a new company, Kalia Horizons, dedicated for the development of the infrastructure required to transport and export production from the Kalia mine site. Furthermore, CIF has now paid the US$40 million to Kalia Horizons to fund the infrastructure feasibility study.
Kalia Horizonsis currently 100% owned by CIF. On finalisation and execution of the definitive agreements, expected on or before 30 June 2010, unless otherwise agreed between the parties, Bellzone will be issued shares representing 10% of the enlarged issued share capital of Kalia Horizons which shall be non-dilutable (the "Carried Interest"). Bellzone shall retain the Carried Interest for the duration of the feasibility studies, construction and operation of the infrastructure without any obligation to finance the infrastructure.
As per the agreement with CIF, Bellzone will provide the development rights and expertise to Kalia Horizons to support the development of the infrastructure.
Nik Zuks, Managing Director of Bellzone Mining plc, commented: "I am pleased to report the incorporation of Kalia Horizons, which has been formed for the development of therail and port facilities for our Kalia Iron Project. As per the terms of the Binding MOU, the new company has now received US$40 million from CIF to fund the infrastructure feasibility study which is a clear indicator of the commitment from CIF to this project. Once the definitive agreements with CIF have been executed, expected later this month, Bellzone will be issued a non-dilutable 10% carried interest in Kalia Horizons as well as priority access right for the rail and port facilities. We look forward to strengthening our partnership with CIF as we develop and implement the infrastructure project that will open up Guinea's mineral deposits".
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 Jos Simson/Charlie Geller |
+44 (0)20 7429 6603 / +44 (0) 7899 870 450 |
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 on or before 30 June 2010 or such later date as is agreed between the parties.
Bellzone is listed on the AIM market of the London Stock Exchange under the ticker 'BZM'.
www.bellzone.com.au