25th Apr 2014 16:33
LONDON (Alliance News) - Bellzone Mining PLC's major shareholder China Sonangol International Pte Ltd announced Friday that it does not intend to make an offer for the company at this point, but the two parties remain in equity capital discussions.
China Sonangol was required by London Stock Exchange rules to announce whether it wants to make an offer for Bellzone by Friday, after the two parties entered talks on March 28.
China Sonangol said in a statement that discussions over equity financing with the iron ore, nickel and copper mining exploration and development company have continued since then but have not progressed to the point where the equity investment can be made, meaning that it does not currently intend to make an offer for Bellzone.
It said that the parties remain in active discussions over the investment, and it still contends that an offer for Bellzone remains on the cards.
China Sonangol is Bellzone's third-largest shareholder with a 24.61% stake, according to data on Morningstar.
Bellzone said in March that the discussions were in relation to China Sonangol taking a 30% or more stake in Bellzone.
Bellzone shares closed down 7.4% at 3.02 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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