2 Sep 2010 07:19
7.00 am 2 September 2010
Bellzone Mining plc
("Bellzone" or the "Company")
Bellzone Mining Convention and Exclusive Infrastructure Rights Secured by Presidential Decree
Bellzone Mining plc (AIM: BZM), the iron ore and nickel/copper exploration company developing the Kalia Mine in the Republic of Guinea, West Africa, is pleased to announce that the Mining Convention (the "Convention") for its Kalia Mine (the "Mine" or "Project") and associated infrastructure, the approval and signing of which was announced on 28 of July 2010, has been passed into Guinea law through Presidential Decree signed on 31 August 2010.
In addition, the infrastructure accord (the "Infrastructure Accord") signed with the Republic of Guinea and announced on 17 June 2010 has also been passed into Guinea law through Presidential Decree signed on 31 August 2010.
The Convention confirms Bellzone's right to develop the Project and associated Mine infrastructure and defines the mining and economic conditions pursuant to which that is undertaken. The Infrastructure Accord provides Bellzone with an exclusive 30 month period to complete the technical and economic feasibility studies, gain approval by the Government of Guinea and negotiate the related infrastructure convention and concession to enable the construction and operation of the multi-user heavy gauge rail network and associated port facility. Work on the feasibility study for the infrastructure has commenced through the Company's joint venture with China International Fund Limited ("CIF") in a specially incorporated infrastructure vehicle Kalia Horizon Minerals Pte Ltd - which CIF has provided with US$40 million of funding for the feasibility studies.
The previously announced terms of the Convention and Infrastructure Accord are unchanged but the effect of the passing of the Convention and Infrastructure Accord into law is to enshrine the Company's security of tenure in relation to each of them and demonstrates the Guinean government's commitment to the development of the Kalia Mine and rail and port infrastructure. Once a convention or accord is passed into law through Presidential Decree, the terms of that convention or accord are set as law and effectively cannot be challenged or altered without consultation of the holder of the convention or accord or the Government and President of Guinea.
Nik Zuks, Managing Director of Bellzone Mining plc, commented: "Since the IPO on 1 April 2010, Bellzone has continually achieved its stated development plan. Following the signing of the detailed agreements with the CIF, we have a fully funded rail and port solution and an option to fund the Kalia mine.
We have also secured a 50/50 joint venture with CIF to develop their highly prospective Forecariah iron ore leases in Guinea, which have the potential to provide Bellzone with early cashflow.
With the lawful securing of the Mining Convention and our exclusive infrastructure development rights by Presidential Decree, the Bellzone team can continue to focus on developing our vision of a 50mtpa iron ore operation in Guinea with the full support and confidence of the Guinean government."
end_of_the_skype_highlightingEnquiries:
| 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/Paul Youens |
+44 (0)20 7429 6603 +44 (0)7899 870 450 |
Bellzone Mining plc
Bellzone Mining plc is an iron-ore and nickel/ copper exploration and development company with assets in Guinea, West Africa. The Company's flagship project, the Kalia Iron Mine 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 Prospect has the potential to host more than 13 billion tonnes of magnetite and 2.9 billion tonnes of oxide at surface. Exploration work continues to further define the potential at Kalia. The SEIA and EIA studies are underway to support the completion of the Bankable Feasibility Study.
Bellzone intends to develop a 50 million tonnes per annum ('mtpa') iron ore production through a two staged approach. First production is expected in 2014 at a rate of 20mtpa which is expected to fund the ramp up period to a rate of 50mtpa in 2018.
Bellzone announced the signing of an Infrastructure Accord with the Guinea Government on 17 June 2010. The Accord gives Bellzone the exclusive rights to study and develop the rail and port infrastructure required to support the Kalia Iron Project.
On 2 August 2010, Bellzone signed definitive agreements with China International Fund ('CIF') which provides for the full financing of the rail and port infrastructure and the Kalia mine development in return for the rights to purchase 100% of the off-take at market price. In addition Bellzone and CIF will develop the highly prospective CIF Forecariah iron ore leases under a 50/50 joint venture arrangement. This will provide and opportunity to produce early cash flow for the Company.
Bellzone is listed on the AIM market of the London Stock Exchange under the ticker 'BZM'.
www.bellzone.com.au
China International Fund
China International Fund Limited was established in Hong Kong in 2003 to provide developing countries with the knowledge and expertise of China's economic reforms, explore a new framework for Chinese enterprises to expand overseas and introduce laudable concepts and worth-learning ideas from other developing countries into China.
Major businesses include large-scale national reconstruction projects and infrastructure construction in developing countries, e.g. Public Housing, Public Utilities, Highway, Railway, Airport, Building, Water Projects, Electricity Projects, Industrial Zone, Logistics Centre, Ship Building, Shipping, National Administration Complex and New City etc.
www.chinainternationalfund.com
Bellzone Mining (BZM)