Bellzone Mining PLC Mining Convention and Funding Update (9065A)

TIDMBZM

RNS Number : 9065A

Bellzone Mining PLC

29 March 2017

29 March 2017

Bellzone Mining plc

("Bellzone" or "the Company")

Mining Convention and Funding Update

Mining Convention

Bellzone (AIM: BZM) announces that following a meeting with the Guinea Minister of Mines and Geology in Conakry on 22 March 2017, the Minister has written to affirm the Government's agreement with respect to the development and exploitation of the ferronickel sub-project contained within Bellzone's Kalia iron ore concession. The Minister's letter expresses his hope that Guinea and Bellzone will make their best efforts to reach a consensus on any consequential residual points so that a formal record of the agreement can be signed within one month.

The 2010 Mining Convention (the "Convention de Base") for Bellzone's Kalia Mine and associated infrastructure was passed into Guinea law through Presidential Decree on 31 August 2010. Negotiations to up-date the Convention de Base by way of an Amendment Agreement commenced in late 2015 as part of the national programme undertaken by the Technical Committee for the Review of Mining Titles and Conventions (the "CTRTCM") overseen by the Strategic Committee. These negotiations have subsequently continued with the Ministry of Mines and Geology after the closure of the statutory review process in April 2016.

Funding

Consequent to the progress made towards the conclusion of negotiations on the revised arrangements for the Kalia Mine, Bellzone has today completed the final drawdown of US$0.5 million from the first loan facility of US$6.5 million agreed with Hudson Global Group Limited ("Hudson") and announced on 24 December 2015. Bellzone's remaining 2017 working capital needs will met by drawing on the second loan facility from Hudson of US$4.0 million announced on 28 December 2016.

Enquiries:

 
Bellzone Mining plc 
 Simon Edwards                   [phone] 
WH Ireland Limited 
 Nominated Adviser and 
 Broker 
 James Joyce / James Bavister    [phone] 
 
Bell Pottinger 
 Financial Public and Investor 
 Relations 
 Marianna Bowes                  [phone] 
 

http://www.bellzone.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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March 29, 2017 07:33 ET (11:33 GMT)