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.