BZM Bellzone

TIDMBZM

RNS Number : 7530Q

Bellzone Mining PLC

14 September 2017

Bellzone Mining plc

("Bellzone" or "the Company")

Mining Convention Update

Bellzone (AIM: BZM) announced on 8 June 2017 that the provisionally agreed addendum to the 2010 Mining Convention was going through the official approvals process with the expectation that it was to be signed by Guinea Ministers and ratified by the National Assembly in the coming weeks.

Since then, the Company has been in continuous contact with the Ministry of Mines and Geology ("MOMG") and was informed at the beginning of August by the MOMG Minister that almost all the administrative procedures have been completed, with the sole outstanding issue being the impact on national roads of the envisaged ferronickel project. Additional information was provided to the MOMG and the Company understands that this issue has been satisfactorily addressed and that no further technical issues remain.

The last three months have seen unusually heavy rains which have required official attention. More importantly, the Guinea Government has also been engaged in high-level negotiations to secure international financing and agree new investments in the mining sector. It has been recently reported that China has agreed to loan Guinea up to US$20 billion and invest heavily in developing the bauxite/aluminium sector, with the funds earmarked for much-needed national infrastructure projects. These developments are expected to have a significantly positive impact on the overall economy and accelerate the progress of the mining sector in particular.

While Bellzone expects to be a beneficiary of this macro-economic impetus, our file has inevitably lost precedence and at this time there is still no clarity as to when the addendum will be signed. Fortunately, the unforeseen delay has not resulted in any material impact on the Company's operations as the weather has limited the ability to do significant work. The Company understands that nothing prevents the MOMG Minister from signing expeditiously and all is in readiness to continue the ferronickel project feasibility study when the formalities are completed.

The Company intends to meet without delay with the MOMG Minister, when his schedule permits, to clarify next steps and a further update will follow.

Enquiries:

 
Bellzone Mining plc 
 Simon Edwards                  +44 (0) 7767 492 712 
WH Ireland Limited 
 Nominated Adviser and Broker 
 James Joyce / James Bavister   +44 (0) 20 7220 1666 
 
 

http://www.bellzone.com/

This information is provided by RNS

The company news service from the London Stock Exchange

END

UPDSFFSULFWSESU

(END) Dow Jones Newswires

September 14, 2017 05:04 ET (09:04 GMT)

Bellzone Mining (LSE:BZM)
Historical Stock Chart
From Apr 2024 to May 2024

Bellzone Mining (LSE:BZM)
Historical Stock Chart
From May 2023 to May 2024