Bellzone Mining PLC Corporate Update (9565Q)

TIDMBZM

RNS Number : 9565Q

Bellzone Mining PLC

11 June 2018

Bellzone Mining plc

Corporate Update

Bellzone Mining plc ("Bellzone" or the "Company") (AIM: BZM) informs that it has commenced active dialogue with a number of separate and non-related parties to explore options to maximise the present value of its major assets. These include the Company's Konta Port, the ferronickel project previously detailed and the principal Kalia iron ore project.

Konta Port was built over 3 years for an approximate cost of US$120m and has an installed bulk commodities capacity of 4 million tons per annum ('mtpa') with a footprint and berth capable of extension up to 10 mtpa. It has been successfully used for several iron ore exports in 2012-13 and constitutes a viable and rare port facility for both imports and exports. There is a shortage of port infrastructure for large bulk volume in Guinea and an increase in mining activity, as demand for a number of minerals increases, further enhances the potential value of this asset.

In terms of the Company's mining assets, nickel price increases have steadily reflected the reality of higher demand from electric vehicles and limited global supply. The second stage of the ferronickel project feasibility study is targeted to be completed this year; the first stage of the feasibility study assessed an NPV10 of $104m when updated for the current forecast nickel price of $17,500/t. High quality iron ore such as exists at Kalia and which has a relatively short time-to-market production capability can offer near-term appeal to certain strategic investors. Kalia's iron ore project has a Bankable Feasibility Study, the NPV of which has been assessed by the Company to be positive over a range of different iron ore prices as disclosed in the Company's presentations which are on the home page of the website www.bellzone.com.

The Company emphasises that all discussions are at an exploratory stage, and there is no certainty that any transaction will eventually be agreed.

Enquiries:

 
 Bellzone Mining plc 
 Simon Edwards                       [phone] 
                                      [e-mail] 
 
 WH Ireland Limited 
 Nominated Advisor & Joint Broker 
 James Joyce / Jessica Cave          [phone] 
 SVS Securities plc 
 Joint Broker 
  Tom Curran / Ben Tadd / Nick 
  Aitchison                           [phone] 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

MSCVFLBFVQFZBBX

(END) Dow Jones Newswires

June 11, 2018 04:45 ET (08:45 GMT)