ZincOx Resources PLC Development Loan Restructuring (6250Q)

TIDMZOX

RNS Number : 6250Q

ZincOx Resources PLC

03 September 2014

3 September 2014

ZincOx Resources Plc

("ZincOx" or the "Company")

Development Loan Restructuring

ZincOx Resources plc, (AIM:ZOX) the developer and operator of one of the largest electric arc furnace dust recycling facilities in the world, is pleased to announce that it has finalised an agreement with Korea Zinc Company Ltd ("Korea Zinc") to extend the repayment date of the Development Loan of US$15 million by one year so that it will now fall due in February 2016. This loan had been provided by Korea Zinc as part of the financing of the Company's Korean Recycling Project ("KRP") in return for an offtake of the zinc oxide produced by KRP. This extension should allow KRP to generate sufficient cash for the Development Loan to be repaid in full by this date.

In return for the extension, ZincOx has agreed to increase the overall volume of zinc oxide to be supplied to Korea Zinc to 840,000 tonnes, an increase of 70,000 tonnes; the effect of which is to extend the life of the offtake agreement by about one year. In all other respects the agreements remain unchanged.

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.

The planned inspection and maintenance closure in August has been completed and KRP has restarted and the Company remains committed to achieving full production in the fourth quarter of 2014; well timed for the strengthening zinc price.

A further production update will be given at the time of the half year results scheduled to be announced on 30 September 2014.

Commenting on the announcement;

Andrew Woollett, Chief Executive Officer, said: "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".

For further information please contact:

 
 
                                         Tel: [phone] 
 ZincOx Resources plc                    0100 
 Andrew Woollett, Chief Executive 
  Officer 
 
   Peel Hunt LLP (Nominated Adviser      Tel: [phone] 
   and Joint Broker)                     8900 
 Richard Kauffer 
  Daniel Harris 
 finnCap Limited (Joint Broker)        Tel: [phone] 
  Matthew Robinson                      0500 
  Joanna Weaving 
 Tavistock Communications (Financial   Tel: [phone] 
  PR)                                   3150 
  Simon Hudson 
  Nuala Gallagher 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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