Last checked at 8 Nov 2017 07:00
08 November 2017
ENVIRONMENTAL PERMIT AWARDED TO THE ZANAGA IRON ORE PROJECT
Zanaga Iron Ore Company Limited ("ZIOC" or the "Company") (AIM: ZIOC) is pleased to announce that the Zanaga Iron Ore Project (the "Zanaga Project") has been awarded an Environmental Permit ("the Environmental Permit") by the Ministry of Environment of the Republic of Congo ("RoC").
The Environmental Permit covers the Zanaga Project's first phase of development pursuant to its Mining Licence granted in August 2014, as outlined in the Zanaga Project's Feasibility Study ("Feasibility Study").
A Social and Environmental Impact Assessment study (SEIA) was lodged with the Ministry of Environment of the RoC in April 2014. Following comments received from the Ministry of Environment an amended SEIA was transmitted in June 2017 which has been approved through the award of the Zanaga Project's Environmental Permit signed on 6 November 2017.
The receipt of the Environmental Permit is a significant milestone in the advancement of the Zanaga Project, together with the Zanaga Project's Mining Convention and Mining Licence. The Project team will now seek to advance the appropriate port and power arrangements with the relevant bodies in the RoC.
The project team remains encouraged by improving iron ore market conditions for premium products. However, any development of the 12Mtpa Stage One project is dependent upon financing.
As reported in the Company's annual results published on 28 June 2017, the Project team commenced the process of actively investigating the potential for the early development of a small-scale, low capex, low opex project utilising road and potentially rail transportation solutions as well as existing port infrastructure. The Company intends to be in a position to provide more detail on the outcomes of this study work by the end of this year.
Clifford Elphick, Non-Executive Chairman of ZIOC, commented: "I am pleased that the Zanaga Project has been awarded its Environmental Permit and would like to thank the Ministry of Environment of the Republic of Congo for its diligence in reviewing the extensive work completed by the Project team.
Obtaining the Environmental Permit will assist us in our efforts to advance the Zanaga Project and attract finance to enable this valuable resource to be brought into production.
We look forward to providing further updates to shareholders towards the end of the year"
For further information, please contact:
Zanaga Iron Ore
Corporate Development and Andrew Trahar
Investor Relations Manager +44 20 7399 1105
Liberum Capital Limited
Nominated Adviser, Financial Richard Crawley
Adviser and Corporate Broker and Neil Elliot
+44 20 3100 2000
About us:
Zanaga Iron Ore Company Limited (AIM ticker: ZIOC) is the owner of 50% less one share in the Zanaga Iron Ore Project based in the Republic of Congo (Congo Brazzaville) through its investment in associate. The Zanaga Iron Ore Project is one of the largest iron ore deposits in Africa and has the potential to become a world-class iron ore producer.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.