Bellzone Mining plc
AIM : BZM

Bellzone Mining plc

June 17, 2010 15:32 ET

Bellzone Mining Signs Infrastructure Accord With Republic Of Guinea

LONDON, ENGLAND--(Marketwire - June 17, 2010) - Bellzone Mining plc (AIM:BZM) ("Bellzone" or the "Company"), the iron ore company developing the 2.4 billion tonne JORC magnetite Kalia Iron Project ('Kalia') along the estimated 13 billion tonne Kalia magnetite deposit in Guinea, West Africa, today announced the signing of an infrastructure accord (the "Infrastructure Accord") with the Republic of Guinea for the exclusive right to complete the technical and economic feasibility studies for the rail and port infrastructure required to transport and export the iron ore from its Kalia Iron Project.

Highlights:
  • Exclusive rights over the identified infrastructure rail route and port area for the duration of the Infrastructure Accord

  • 30 month timescale to complete feasibility studies and finalise the convention for the infrastructure

  • Republic of Guinea to facilitate all administrative processes to contribute to the optimal completion of the feasibility studies

  • Bellzone to be issued a Certificate of Exclusive Build, Operate and Transfer ("B.O.T.") Dealer on signing of the infrastructure convention

Under the terms of the Infrastructure Accord, Bellzone has a 30 month period to complete the technical and economic feasibility studies, gain approval by the Government of Guinea and negotiate the related infrastructure convention and concession. During this 30 month period the Republic of Guinea will provide exclusive rights over the identified Infrastructure Accord area. It will also facilitate all administrative processes, procedures and activities likely to contribute to the optimal completion of the feasibility studies.

The feasibility studies for the Kalia infrastructure will be funded by China International Limited (CIF) and undertaken by Kalia Horizons Minerals Pte Ltd, the newly formed and funded infrastructure company established under the terms of the Binding Memorandum of Understanding with CIF as announced on 24 May 2010. The feasibility studies will be supervised by a steering committee, including the Ministry of Mines and Geology, the Ministry for Construction, Town planning and Housing, the Ministry of Transport, the Ministry of the Economy and Finances, the Environment Ministry, the Ministry for Industry, the Ministry for Public Works, the Ministry for Land Administration and Decentralisation and the Administration and Control of Great Projects (ACGP) to ensure all stakeholder requirements are understood and accounted for.

The Republic of Guinea has undertaken to approve the findings of the feasibility studies within one month and will issue to Bellzone a Certificate of Exclusive B.O.T Dealer on signing of the infrastructure convention and convention.

The Infrastructure Accord has been signed by The Minister for Mines and Geology, The Minister for Transport, The Minister for Construction, Town planning and Housing and The Minister for the Economy and Finances, further indicating the Guinea Government's support for Bellzone and its project development plans.

Bellzone CEO and founder Nik Zuks commented, "The Infrastructure Accord is another important milestone and de-risks the project execution plan further. We are now in a position to develop and implement a fully funded infrastructure solution with our partner CIF and have Government support to develop it. As a result, we are now strongly placed to realise the significant potential of the Kalia iron ore deposits."

His Excellency, Mr Mahmoud Thiam, The Minister for Mines and Geology, The Republic of Guinea, said, "The approach and commitment that Bellzone is demonstrating, with the support of its partner CIF, is an example of what can be achieved in a very short time frame. This infrastructure will unlock significant value for Guinea. It ensures Bellzone can export its iron ore, and unlocks other mining projects in Guinea that can also benefit from access to the infrastructure. We will afford this partnership the support necessary to develop the project quickly." 

Bellzone Mining plc

Bellzone Mining plc is an iron-ore exploration and development company with assets in Guinea, West Africa. The Company's flagship project, the Kalia Iron Project, is underpinned by its 100% owned Kalia iron deposit which has a maiden inferred magnetite JORC resource of 2.4 billion tonnes, located on the Kalia I prospect. Previous drilling results and internal estimates indicate that the Kalia iron deposit has the potential to host more than 13 billion tonnes of magnetite ore and 2.9 billion tonnes of surface oxide. Exploration work continues to further delineate and increase the resources at Kalia with the SEIA and EIA studies already underway in support of the Bankable Feasibility Study.

Bellzone intends to develop a 50 million tonnes per annum ('mtpa') iron ore operation through a two staged approach. First production is expected in 2014 at 20mtpa which is expected to fund the expansion to 50mtpa schedule for completion in 2018.

On 24 May 2010, Bellzone reached a Binding Memorandum of Understanding ('MOU') with China International Fund ('CIF') with regards to the financing of the infrastructure required for the Kalia Iron Project. 

The Binding MOU is subject to the parties agreeing and executing definitive agreements for the infrastructure company, joint venture agreement and off-take agreement on or before 30 June 2010 or such later date as is agreed between the parties.

Bellzone is listed on the AIM market of the London Stock Exchange under the ticker 'BZM'.

Contact Information

  • Bellzone Mining plc
    Nik Zuks
    +61 439 420 893
    www.bellzone.com.au
    or
    Canaccord Genuity Limited
    Andrew Chubb
    Nominated Adviser and Joint Broker to Bellzone
    +44 (0)20 7050 6500
    or
    Canaccord Genuity Limited
    Tarica Mpinga
    Nominated Adviser and Joint Broker to Bellzone
    +44 (0)20 7050 6500
    or
    Renaissance Capital Limited
    Simon Matthews
    Joint Broker to Bellzone
    +44 (0)20 7367 7777
    or
    Renaissance Capital Limited
    Thomas Beattie
    Joint Broker to Bellzone
    +44 (0)20 7367 7777
    or
    Conduit PR
    Charlie Geller
    +44 (0)20 7429 6604
    or
    Conduit PR
    Jos Simson
    +44 (0) 7528 233 383