Massive news this - Re-rate over the next few days and months. this company have alot of things that have been sitting on the back burner waiting for this RNS - Further news should come thick and fast now.
NS Number : 0444W
Bellzone Mining PLC
09 November 2017
9 November 2017
Bellzone Mining plc
("Bellzone" or "the Company")
Mining Convention Update Signed
Following previous updates on 8 June and 14 September 2017, Bellzone (AIM: BZM) announces the signing on 9 November 2017, by its wholly-owned subsidiaries OTN Mining Ltd (Jersey) and Bellzone Holding SA and by the Republic of Guinea, represented by the Guinean Minister of Mines and Geology and the Minister of Budget, of the Addendum (L'Avenant n°1 à la Convention de Base) ("Addendum"). The Addendum updates the Mining Convention (Convention de Base) ("Convention") for its Kalia Mine and associated infrastructure, which was originally signed on 26 July 2010 and ratified by Presidential Decree on 2 September 2010.
Subsequent ratification of the Addendum by the National Assembly and promulgation into law by Presidential Decree is expected to follow in accordance with Guinean legal process.
Negotiations on the Addendum commenced in 2015 as part of the national programme undertaken by the Technical Committee for the Review of Mining Titles and Conventions (the "CTRTCM") overseen by the Strategic Committee, both implemented by the Government of Guinea. Negotiations were concluded with the Ministry of Mines and Geology after the closure of the statutory review process in April 2016.
The Addendum reflects the parties' good-faith efforts to comply with Article 52 of the existing Convention to amend it as necessary to restore the balance that initially prevailed at the original signing. Importantly, the Addendum provides the legal framework for detailed commitments by Bellzone to conclusively determine the feasibility of its planned ferronickel ("FeNi") project, implement such project if feasible and to define the path towards the realisation of the world-class iron ore project at Kalia.
The Addendum updates the Convention. The Addendum maintains the existing legal, tax and customs stability provisions such that, other than where specifically provided, the Convention as amended by the Addendum remains under the jurisdiction of the 1995 Mining Code but nevertheless incorporates important aspects of the new Mining Code adopted by Guinea in 2011, as amended ("2011 Mining Code"). In addition, the Addendum recognises particular updates to broader laws and regulations to better align Bellzone's operations with Guinea's on-going economic development. In particular, the Addendum recognises the ability to undertake independently-defined sub-projects (such as the ferronickel sub-project) and thereby provides the economic flexibility to generate new revenue streams as they become viable.
Key Bellzone undertakings:
§ Submit the Kalia Mine Economic & Social Impact Assessment ("ESIA") revised for the impact of the proposed ferronickel smelters by the end of October 2018.
§ Conclude the ferronickel feasibility study by the end of November 2018.
§ If the ferronickel feasibility study is positive, commence development of the ferronickel mine and production facility within 6 months of the approval of the feasibility study by the Ministry of Mines and Geology and achieve commercial production within a further 6 months, such commercial production being deemed achieved when FeNi or NPI (Nickel Pig Iron) production levels, over a period of 90 days, will correspond to 10,000 tons per annum.
§ Commence a ferronickel project expansion study within a period of 2 years from the beginning of commercial production of the FeNi or NPI sub-project.
§ Review and update the 2013 KP1 iron ore Bankable Feasibility Study ("BFS") within four years of the date of signature of the Addendum, other than in respect of bankability status. If this review is positive, commission a full update of the KP1 BFS.
Updated economic conditions:
§ Tax regime highlights:
- Commercial and industrial profit tax ("BIC") exempt until the end of the
From I/2 year accounts -
"In June 2017, Bellzone announced it had reached provisional agreement with the Guinean Government on the addendum to its 2010 Mining Convention for Kalia. A subsequent announcement was made on 14 September 2017 which stated that no formal signing date had yet been determined but the Company understands that there are no significant issues preventing signing. This remains the situation at this time."
Does the share movement today indicate things are on the move???
I haven't seen anything as of yet confirming that this has been signed?
Where did you get your info, I was expecting this to be confirmed which should be due any day.
If you are correct, do you know financially what the benefit will be?
like you, I hope It gets confirmed ASAP, I've held this one for some time and need 3.5 to breakeven, so 5/7 would be great.
I've not been able to find any information re possible impact of these licenses, I.e. possible income will generate and if sufficient to cover day to day running + repay the loans...
Does anyone know?
I continue to hope, that this one will turn things around.
Good luck to all invested
It seems the day traders have moved in, and are making money!
Let's hope they confirm for sure the licences in the next couple of weeks.
I'm expecting this to move to 4.5p / 5p for next move up.
Also on the latest company update they have only used 800k of the latest 4ml loan taken after the initial 6.5ml, which is expected to last them until mid 2018!!!
On the back of last wks spike I had a look at this and from what I can see it doesn't have enough cash to see them through to June 2018. It has to repay $6.5m by March 2018 and only has about $5m as of today and is burning about $200,000 per mth. These guys are going to have a really problem with its auditors come end of June as the balance sheet looks like a horror story!
With confirmation from the Guinean ministers that the addendum to the 2010 mining convention has been ratified, allowing recommencement of the Kalia mining, may well lead to a double digit SP as the chart demonstrates, as early as next week. Fingers crossed and hold on tight!! Of course DYOR
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