Bellzone Mining PLC 2017 Funding and Business Update (8630S)
December 28 2016 - 4:47AM
UK Regulatory
TIDMBZM
RNS Number : 8630S
Bellzone Mining PLC
28 December 2016
28 December 2016
Bellzone Mining plc
("Bellzone" or "the Company")
2017 Funding and Business Update
Bellzone (AIM: BZM) announces that agreement has been reached
with Hudson Global Group Limited ("Hudson"), which has a 61.93 per
cent. shareholding in the Company, regarding the Company's working
capital funding for 2017.
The Company's working capital requirements up to the end of 2016
have been funded by a US$6.5 million loan facility which is to be
repaid to Hudson with accrued interest on 31 March 2018. A total of
US$6.0 million has been drawn down to date.
In addition to the remaining US$0.5 million undrawn commitment,
Hudson has agreed to make available a second loan facility of up to
US$4.0 million to Bellzone (the "Hudson Additional Loan Facility")
with effect from 1 Jan 2017, with the first drawdown occurring no
later than 28 February 2017.
This smaller loan amount compared to previous loans is a
reflection of Bellzone's continuing collective effort to further
reduce its operating budget in 2017. The Hudson Additional Loan
Facility will be on substantially the same commercial terms as the
existing Hudson loan facility, with interest chargeable at Libor
plus 5 per cent. which will accrue to be paid along with repayment
of the principal drawn on 31 March 2018.
Accrual of interest due under CSIS Loan Facility
Bellzone also announces that China Sonangol International (S)
Pte Ltd ("CSIS") has agreed to revise the interest payment dates on
31 December 2016 and 31 December 2017 with respect to its US$10.2
million loan facility as last amended on 5 March 2015 to 31 March
2018 and for the net expenses incurred by Bellzone in relation to
this loan facility to be aggregated together as part of the same
loan facility.
Related Party Transactions
Under the AIM Rules, as a result of its 61.93 per cent.
shareholding in the Company, Hudson is a related party of Bellzone.
The Independent Directors of Bellzone, being Michael Farrow, Simon
Brickles and Antony Gardner-Hillman consider, having consulted with
Bellzone's Nominated Advisor, WH Ireland Limited, that (i) the
terms of the Hudson Additional Loan Facility; and (ii) the change
of interest due dates on the CSIS US$10.2 million loan facility are
fair and reasonable insofar as the shareholders of Bellzone are
concerned.
2017 Business Plan
Bellzone is in the final stages of negotiations with the
Government of the Republic of Guinea to update its Kalia Base
Convention which was ratified in August 2010. Following the signing
and ratification of the Addendum and updated Convention provisions,
Bellzone intends to proceed without delay to complete the next
steps required to convert the initial results of the technical
study announced on 25 August 2016 into a full feasibility study
assessment of the economic viability of the Ferronickel Project.
The financing required to complete the key next steps of the
feasibility study work has already been substantially raised in the
equity placing announced on 21 January 2016.
Termination and dissolution of Bellzone Employee Share Plan
Trust ("BESPT")
The BESPT was dissolved on 19 December 2016. At the time of
dissolution, the BESPT held 21,652,840 ordinary shares of no par
value ("Ordinary Shares") in the issued share capital of the
Company. These shares have been transferred to Bellzone Mining plc
and will be held in treasury.
Total Voting Rights
The issued share capital of the Company is 1,469,858,383
Ordinary Shares. As a result of the transfer of shares from the
BESPT to Bellzone, Bellzone now holds 32,657,970 Ordinary Shares in
treasury. Accordingly, the issued share capital of the Company for
the purpose of calculating total voting rights will be
1,437,200,413 Ordinary Shares.
Mr. Michael Farrow, Chairman of Bellzone, said:
"2016 has been a productive year in terms of advancing our
discussion with the Guinea Government to update our Kalia
Convention, developing our understanding around the economic
possibilities with respect to the Ferronickel Project and working
together as a team to add to our operating resilience. Once again
on behalf of the Board and all our shareholders, I would like to
express my sincere appreciation to Hudson and CSIS for their
continuing strong support for Bellzone, which will allow us to move
another step closer to realising the world-class potential of our
Kalia iron ore concession."
Enquiries:
Bellzone Mining plc
Simon Edwards +44 7767 492 712
WH Ireland Limited
Nominated Adviser
James Joyce / James Bavister +44 20 7220 1666
HD Capital Partners Ltd
Broker
Paul Dudley +44 20 3551 4870
Bell Pottinger
Financial Public and Investor
Relations
Marianna Bowes +44 20 3772 2500
http://www.bellzone.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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