News Column

Bellzone Mining Fails To Secure Financing, In Talks Over Short-Term Loan

August 11, 2014

Alice Attwood

LONDON (Alliance News) - Bellzone Mining PLC said Monday that it has been unable to secure long-term financing but that it is currently in talks with China Sonangol International Pte in relation to the provision of a short term loan.

The iron ore producer and mineral developer which is focused on the Republic of Guinea in West Africa said in June that it had sufficient funds to continue operations until early August 2014, following a GBP1.1 million placing with China Sonangol.

While unable to secure financing on a long-term basis, Bellzone is in talks with the company regarding the provision of a USD4 million short-term loan which would allow operations to continue to late October 2014, though Bellzone said this is yet to be finalised.

The loan would be secured against Bellzone's Kalia Project.

At the end of June the company reported that it was still seeking funding to develop the Kalia project in Guinea, and reported a significantly widened pretax loss of USD156.5 million in 2013 from USD54.2 million in 2012 as it was hit by a major impairment charge.

The company is currently developing its flagship Kalia project which has a JORC reserve of 7 million tonnes of iron ore in 58% fines per year production at a total capital cost of USD865 million.

Shares in Bellzone Mining were Monday quoted at 1,695 pence per share, untraded.

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Source: Alliance News

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