20th Feb 2014 14:49
LONDON (Alliance News) - Bellzone Mining PLC Thursday said a legal case has been brought against its 50% owned Forécariah Joint Venture in Guinea by a former contractor.
The iron ore, nickel and copper mining exploration and development company, with operations in the Republic of Guinea, said the former contractor is claiming that USD6.1million is outstanding for construction works contracted with the Singapore based Forécariah Holdings PTE LTD.
The company has an investment in Forécariah Holdings through its wholly owned subsidiary Iron Developments Ltd.
Bellzone said the legal case is being rigorously defended by the JV, but it does not impact on Bellzone or its Guinea-based subsidiaries.
The company said the JV is capable of settling the liability should the legal case be decided against it and Bellzone maintains the position that the JV will remain self-sustaining from a cash perspective.
Bellzone said that the joint venture has been operating successfully in 2014 and has shipped two cargoes of iron ore this year, with a third cargo ready to be loaded once a ship arrives in port.
The company added that it remains in discussions with both short and long term providers of finance and the company's cash position remains sufficient to continue operations into the csecond quarter.
Bellzone shares were down 3.9% to 3.7 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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