Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Aim-listed Bellzone Mining on Monday said it was confident of meeting a 2016 deadline to export the first iron-ore from its flagship Guinea-based Kalia mine, provided that full funding was secured this year.
“Although we have not been immune to the delays in funding that have been seen across the iron-ore sector this year, where prices have been under downward pressure, I am very pleased with the progress we have made with regard to funding Kalia,” Bellzone CEO Glenn Baldwin averred.
Following the completion of the bankable feasibility study late last year, which showed robust economics, even in a low iron-ore price environment, the company had been focused on securing funding for the project.
As Bellzone progressed active discussions with potential providers of both short-term and project finance, the group had secured a short-term funding agreement through a placement with major shareholder, China Sonangol, to ensure the ability of the company to meet its immediate obligations until August.
Bellzone had placed 51-million new ordinary shares with China Sonangol, at a price of 2.5p apiece, raising net proceeds of about £1.1-million.
The company reported a cash balance of $1.48-million as at June 13 to fund activities until August.
“We remain confident in the quality and potential of Kalia as a key resource globally, and will continue to build on the progress made to date,” Baldwin concluded.