28th Jan 2015 13:46
LONDON (Alliance News) - Bellzone Mining PLC Wednesday said it is finalising the long-awaited, long-term USD30 million financing facility from major shareholder China Sonagol International Pte Ltd.
On December 3, Bellzone received an USD2 million advance from China Sonagol, which holds a 51% stake in the company, to tie Bellzone over until the longer term deal could be completed.
The USD30 million facility will either be in the form of secured debt or as a convertible loan facility and is in its final stages, said Bellzone.
The longer-term facility has been in the pipeline since November, when China Sonagol advised the company it was willing to provide financial support to assist Bellzone in meeting its liabilities if it could not meet them.
The company said that China Sonagol has also amended the terms of an existing USD4 million short-term loan facility provided to the company in August 2014. The availability of the facility has been extended to March 31, 2015.
Bellzone has drawn down USD3.5 million from the short term facility, with USD500,000 remaining available to draw down. The company said the extension was to provide the company with working capital until the longer-term facility can be finalised.
Bellzone shares were untraded on Wednesday, last trading at 0.525 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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