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Bellzone secures $30m loan from Chinese partner

28th January 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Aim-listed miner Bellzone on Wednesday reported that it was finalising its $30-million secured debt agreement with China Sonangol International to meet its liabilities.

The company last year reported that it had been unable to secure long-term financing, with China Sonangol providing short-term loans as a solution.

Meanwhile, China Sonangol agreed to amend the terms of the short-term finance facility of $4-million signed in August. The loan was secured against the company’s 100%-owned flagship Kalia project, in Guinea.

The project holds a higher-grade Joint Ore Reserves Committee-compliant reserve of 24.2-million tons at a grade of 53.5% iron, within a larger oxide resource of 913.2-million tons, grading at 36.3% iron.

The amendment extended the availability period and the repayment date to March 31. “With $500 000 remaining to draw down, this extension provides the company with the requisite short-term funding until the facility agreement is signed,” Bellzone noted.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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