ZOX Zincox Res.

 

TIDMZOX 
 
RNS Number : 4634X 
ZincOx Resources PLC 
07 December 2010 
 

              ZincOx Resources plc 
 ("ZincOx" or "the Company") 
7 December 2010 
                  South Korean Recycling Project - Site Leased 
ZincOx (AIM:ZOX) is pleased to announce that its wholly-owned subsidiary, ZincOx 
(Korea) Limited, has signed a 50 year lease for the site ("KRP Site") of its 
Korean Recycling Project ("KRP"). The Lease provides for a minimum rent-free 
period of five years provided that ZincOx completes the development of Phase 1 
of the KRP within two years and the development of Phase 2 within four years. 
ZincOx expects to complete the developments within this timetable. Under certain 
conditions ZincOx will also be eligible for rent-free status beyond five years. 
The KRP Site covers 9.26 hectares within the Cheonbuk General Industrial 
Complex, which is already environmentally permitted. The KRP Site is 
strategically located approximately 10km west of Pohang, in south-west South 
Korea.  Pohang is one of South Korea's major steel producing centres, and will 
supply approximately 20% of KRP's feed requirements. It will also host potential 
customers for KRP's iron product, ZHBI. Pohang's port facilities already import 
coal and are well suited to any export of KRP's finished products. The KRP Site 
is also located close to the main Seoul-Busan motorway providing excellent road 
access for the transport of electric arc furnace dust ("EAFD") from steel mills 
elsewhere in South Korea. 
The KRP will process EAFD, a waste generated throughout South Korea by steel 
recycling companies.  ZincOx has 10 year supply contracts for 400,000 tonnes of 
EAFD per annum (23% zinc) which is currently disposed of in landfill sites at 
some cost to the steel recycling companies. ZincOx's phased development plan 
foresees the treatment of 200,000 tonnes of EAFD in Phase 1 to produce 
approximately 60,000tpa zinc oxide concentrate at 73% zinc and approximately 
95,000 tonnes per annum of ZHBI, an intermediate iron product. In Phase 2 ZincOx 
plans to treat a further 200,000 tonnes of EAFD and produce annually a total of 
approximately 120,000 tonnes of zinc oxide concentrate and approximately 190,000 
tonnes of ZHBI. 
ZincOx expects to have offtake arrangements in place prior to commencement of 
construction of Phase 1 of the plant for the zinc oxide concentrate and for 
ZHBI, which could also be sold into the scrap spot market. 
KRP has received strong support from the South Korean Government, as 
demonstrated by the designation of the KRP Site as a Foreign Investment Zone 
("FIZ") and by its decision to allocate funds for the purchase of the KRP Site 
and its lease to ZincOx on advantageous terms. Foreign Investment Zone status 
also entitles KRP to certain tax privileges including an exemption from 
corporation tax for a period of five years. 
The signing of the lease over the KRP Site enables ZincOx to push forward with 
its development timetable.  Detailed engineering is now underway and the rotary 
hearth furnace and ancillary equipment purchased by ZincOx in the USA at the 
start of 2010 are now being dismantled in preparation for their shipment to 
South Korea. ZincOx expects the first production of zinc concentrate from the 
KRP in Q1 2012. 
Commenting on the announcement, Andrew Woollett, ZincOx's Executive Chairman 
said: "The development of the KRP is beginning to gain significant momentum, and 
at the same time we are making good progress with our financing plans" 
Corporate 
As required by AIM Rule 17 and Schedule 2 Annex III, the Company has made 
updated disclosure on information relating to directors of the Company on its 
website at http://www.zincox.com/about/directors.asp 
 
For information please contact: 
 ZincOx Resources plc 
 Andrew Woollett, Executive Chairman 
 Peter Wynter 
Bee, Managing Director 
 +44 (0) 1276 450100 
 
Nominated Adviser and Broker 
 Ambrian Partners Limited 
 Andrew Craig / Jen 
Boorer 
 +44 (0) 20 7634 4700 
 
Conduit PR 
 Charlie Geller / Paul Youens 
 +44 (0) 20 7429 6604 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCUNRBRRBAURAA 
 

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