Bellzone Mining PLC has agreed a short term financing loan of up to USD 4 million from major shareholder China Sonangol International Pte Limited.
The iron ore producer and mineral developer, which is focused on the Republic of Guinea in West Africa, had said in a statement last week that it had been unable to secure long term financing but it was in talks with China Sonangol in relation to the provision of a short term loan.
Bellzone Mining said that China Sonangol has agreed to provide it with up to USD 4 million in short term funding. Chine Sonangol is Bellzone’s second biggest shareholder with a 29.9% stake.
The company said that it expects to initially draw down USD 750,000, which will provide it with working capital to continue operations until late August. The remaining USD 3.25 million in funds would provide it with enough working capital until late October, although the draw down is subject to the satisfaction of certain further conditions.
The conditions include the completion of the transfer of Bellzone Holdings SA the holder of the Kalia Mining Permit and a wholly owned Jersey subsidiary of the company to OTN Mining Limited another wholly owned subsidiary of the company. This change requires governmental approvals.
The loan enables the company to continue to pursue its discussions with other prospective providers of financing, including for bridge funding, which would enable the company to further progress development work and fund associated working capital while the Kalia project financing is finalised.
Source – Alliance News
Zhejiang Yaang Pipe Industry Co., Limited (www.nctv.net)