News Column

ZincOx Extends Repayment Of USD15 Million Development Loan

September 3, 2014

Sam Unsted



LONDON (Alliance News) - ZincOx Resources PLC Wednesday said it has struck a deal to extend the repayment of a USD15 million development loan by a year, giving it the time to generate sufficient cash to pay off the loan.


The developer and operator of the Korea Recycling Project, one of the largest electric arc furnace dust recycling facilities in the world, said it has secured a deal with Korea Zinc Company Ltd to extend the repayment of the USD15 million development loan to February 2016.


In return for the extension, ZincOx has agreed to increase the overall volume of zinc oxide to be supplied to Korea Zinc by 70,000 tonnes to 840,000 tonnes.


"We are delighted that the relationship with Korea Zinc enabled us to agree this extension and we look forward to increasing cashflow from the project as we ramp up to full production," said Andrew Woollett, Chief Executive of ZincOx.


It hopes that the extension will give it time to generate the cash needed to repay the loan in full.


"The zinc price has continued to strengthen through this year and the market commentators for base metals still talk of a zinc gap due to mine closures. The zinc price has risen by more than 21% over the last year,".


ZincOx shares were trading flat at 12 pence Wednesday morning.







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Source: Alliance News


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