5th Mar 2015 17:14
LONDON (Alliance News) - Bellzone Mining PLC said Thursday that it has sought to restore the trading of its shares on AIM from Friday, after it secured financing with its major shareholder China Sonagol International Pte Ltd.
China Sonagol has agreed to extend and amend the terms of its USD4 million loan facility to Bellzone. The agreement extends the loan to the end of March 2018 and increases the total funding available to USD10 million.
Bellzone has drawn down new funds of USD5 million under the facility, taking the total it has drawn to USD8.5 million, leaving USD1.5 million available to draw. It expects this to give it sufficient working capital for 2015.
Bellzone said that as a result of the fall in iron ore prices, and the Ebola outbreak, it has been unable to raise funds with investors other than China Sonagol. It plans to finance the development of its Kalia project once the Ebola outbreak has eased and the iron ore price improves.
It reiterates that its Kalia Project 1 remains "attractive and commercially viable".
Whilst it has taken measures to further cut costs, Bellzone said it expects to seek new funds from shareholders in 2015.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
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