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(BZM) Bellzone Mining

Discussion in 'General Share Chat (BZM)' started by Inspiration, Jun 8, 2017.

  1. Inspiration

    Inspiration Moderator Moderator

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    This looks as if it's been one of the fastest day trades ever, judging by Twitter comments! The traders have left now and are reinvesting elsewhere.
     
  2. Inspiration

    Inspiration Moderator Moderator

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    Just for the record, so that people can see what drove today's price rise.
    RNS from 29th March

    Bellzone Mining PLC
    Mining Convention and Funding Update
    RNS Number : 9065A
    Bellzone Mining PLC
    29 March 2017

    29 March 2017



    BellzoneMiningplc

    ("Bellzone" or"theCompany")



    Mining Convention and Funding Update



    Mining Convention

    Bellzone (AIM: BZM) announces that following a meeting with the Guinea Minister of Mines and Geology in Conakry on 22 March 2017, the Minister has written to affirm the Government's agreement with respect to the development and exploitation of the ferronickel sub-project contained within Bellzone's Kalia iron ore concession. The Minister's letter expresses his hope that Guinea and Bellzone will make their best efforts to reach a consensus on any consequential residual points so that a formal record of the agreement can be signed within one month.

    The 2010 Mining Convention (the "Convention de Base") for Bellzone's Kalia Mine and associated infrastructure was passed into Guinea law through Presidential Decree on 31 August 2010. Negotiations to up-date the Convention de Base by way of an Amendment Agreement commenced in late 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. These negotiations have subsequently continued with the Ministry of Mines and Geology after the closure of the statutory review process in April 2016.

    Funding

    Consequent to the progress made towards the conclusion of negotiations on the revised arrangements for the Kalia Mine, Bellzone has today completed the final drawdown of US$0.5 million from the first loan facility of US$6.5 million agreed with Hudson Global Group Limited ("Hudson") and announced on 24 December 2015. Bellzone's remaining 2017 working capital needs will met by drawing on the second loan facility from Hudson of US$4.0 million announced on 28 December 2016.
     
  3. Inspiration

    Inspiration Moderator Moderator

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    Bellzone Mining PLC
    Corporate Update
    RNS Number : 4724H
    Bellzone Mining PLC
    08 June 2017

    BellzoneMiningplc

    ("Bellzone" or"theCompany")



    Corporate Update



    Mining Convention

    Further to the Company's announcement on 29 March 2017 about negotiations to update and amend the 2010 Mining Convention for the Kalia Mine, Bellzone is pleased to announce that negotiations, including approval for the Ferronickel project, have concluded satisfactorily. The resulting provisionally agreed addendum to the 2010 Mining Convention is going through the official approval process with the expectation that it will be signed by Guinean Ministers and ratified by the Guinean National Assembly in the coming weeks. A further announcement will be made in due course.

    Funding Update

    The US$6.5 million loan agreed by Hudson Global Group on 24 December 2015 for the purpose of funding Bellzone's working capital requirements (other than feasibility study work) for the financial year ended 31 December 2016 was fully drawn as announced on 29 March 2017.

    On 28 December 2016, Bellzone announced a further loan of US$4.0 million had been agreed with Hudson Global Group for the purpose of funding Bellzone's working capital requirements for the financial year ended 31 December 2017. Bellzone completed the first drawdown of US$0.8 million under this loan on 6 June 2017. The remaining funds available under this loan are now expected to provide working capital through to the end of June 2018.

    Bellzone retains separate funds sufficient for the completion of the feasibility study work on the Ferronickel project at Kalia.

    Mr. Michael Farrow, Chairman of Bellzone, said:

    "On behalf of the Board, I would like to thank the executive team of Bellzone for their hard work in reaching a provisional agreement with Guinean Ministers. We very much look forward to the approval and ratification of the agreement which will enable Bellzone to re-commence work on the Kalia Ferronickel project as quickly as possible."
     
  4. Inspiration

    Inspiration Moderator Moderator

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  5. Groucho

    Groucho Member

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    9 November 2017

    BellzoneMiningplc

    ("Bellzone" or"theCompany")


    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.

    Addendum Highlights

    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 8th year after the first commercial production for each sub-project, then the rate of 30% (reduced from 35% in the Convention) applies;

    - Export tax (royalty) levied on Free On Board value at 7% for unprocessed iron ore, 3.5% for processed iron ore and 2% for Nickel content of ferronickel or NPI;

    - Tax on dividends and investment income levied at 10% for Guinea-resident shareholders and 0% for non-residents;

    - Exemption from VAT to the benefit of the Company, its Affiliates and Direct Sub-Contractors on the purchase or lease of goods and services (imported or domestic) tied to mining operations;

    - Tax-deductible contribution to Local Development Fund of the greater of US$2 million per annum or 0.5% of turnover for five years from the first commercial production from the main iron ore project, 0.5% of turnover for the following three years and 0.7% thereafter, or, if another sub-project proceeds without the production of iron ore, 0.5% of turnover between the first commercial production of the first sub-project and the 8th anniversary of such date and rising to 0.7% thereafter;

    - Local training tax of 1.5% of annual payroll after the first commercial production of the first sub-project, which may be expended directly by the Company on local training programmes and, failing such expenditure, paid to the Guinean Treasury;

    - 10% withholding tax on fees paid to foreign service providers as well as the price for the acquisition of goods and services sourced locally from persons not registered for VAT; and

    - Expatriate taxes at the rate of 10%.

    § Exemptions throughout the duration of the Convention from certain taxes such as license tax, extraction tax, registration rights and stamp duties and generally any other tax not specifically provided for in the Addendum or the Convention.

    § The tax and customs stability clauses of the Convention were maintained and will apply to the new regime, including the provision allowing Bellzone to benefit from future more favourable tax and customs rates as they are amended by Guinea.

    § The State waives it rights under the 2011 Mining Code to acquire any additional participation in Bellzone Holdings S.A. without prejudice to the possibility for the State to acquire an additional participation if an agreement to that effect is reached between the State and the Company. In return, the State shall have an equity interest in Bellzone Holdings S.A. via a non-dilutable carry amounting to:

    - 5% beginning from the first commercial production date for the ferronickel sub-project.

    - Increasing to 7.5% after the 7th anniversary of the first commercial production date for the ferronickel sub-project.

    - Increasing to 10% on the date of the first commercial production for the main iron ore project, whether this occurs prior to or after the 7th anniversary of the first commercial production date for the first sub-project.

    - Any sale, by the State, of the above participation is subject to a right of pre-emption in favour of Bellzone.

    Next Steps

    Further work on the ferronickel project will be undertaken in line with the agreed timetable, and the Company will in parallel dynamically assess the impact of the recent strengthening of iron ore prices on the overall KP1 project.

    Mr. Michael Farrow, Chairman of Bellzone, said:

    "Bellzone is one of the longest established exploration and mining companies in Guinea. Our operating track-record has been based on strong mutual respect with the Government, as well as on our joint efforts to ensure the attractiveness of the country as an investment destination. We are very pleased that we have now agreed a legal framework which updates our existing Convention, by providing improved clarity on the path towards realising Kalia's unique potential and reinforcing competitive investment conditions. Much work has gone into the negotiations and on behalf of the Board and all our shareholders, I would like to express my sincere appreciation to the President and his team for their unwavering support. The respect for due process and the rule of law are vital marks of a thoughtfully progressive nation. As we have said all along, Bellzone is immensely proud to showcase Guinea's world-class mining sector to the international community and we hope to solidify our position as an unrivalled pillar of its future success."
     
  6. Groucho

    Groucho Member

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    23 November2017

    BellzoneMiningplc

    Bellzone announces Placing to raise approximately £1.5million(net)
    and Appointment of Joint Broker



    Bellzone Mining plc ("Bellzone" or the "Company") (AIM: BZM) is pleased to announce a successful non-pre-emptive placing to raise £1.6 million (approximately £1.5m net) (the "Placing") through the issue of 128,000,000 new ordinary shares of no par value at a price of 1.25 pence per share (the "Placing Shares"). This will represent 8.0% of the enlarged issued share capital of the Company.

    SVS Securities Plc ("SVS") acted as broker pursuant to a placing agent agreement whereby SVS will either procure (as agent for the Company) placees for the Placing Shares or subscribe itself for the Placing Shares. The SVS Placing will be undertaken by way of a cashbox placing and Cleargrass No.4 Limited (company number 124361) was registered in Jersey for this purpose.

    The proceeds of the Placing will be applied to advance the completion of the feasibility study on the proposed Ferronickel sub-project and for FY2018 working capital requirements. Approximately 60% of the work required to obtain feasibility study results has been completed and paid for and the remaining work is estimated to require a relatively small proportion of the funds raised. The Company expects to conclude the feasibility study by November 2018 at the latest in line with its obligations under the recently signed Addendum to its Mining Convention.

    The Company intends to make an immediate start to planning for additional bulk sample extraction and a test smelt campaign at Mintek in Johannesburg and regular market updates will be provided.


    The Placing

    Bellzone was on 28 July 2017 granted authority by its shareholders, pursuant to article 2.3 of its articles of association, to issue up to 440,957,000 new Ordinary Shares. The Placing Shares will be issued under this general mandate.

    The Placing is subject to the terms and conditions set out in the Appendix. The price per ordinary share at which the Placing Shares are to be placed (the "Placing Price") will be 1.25 pence per share, representing a discount of approximately 23% to the closing mid-price of the Company's shares of 1.625p on 22 November 2017, being the last day of trading prior to the announcement of the Placing.

    As a result of the Placing, the total issued share capital of the Company will be 1,597,858,383 Ordinary Shares of no par value, of which 32,657,970 Ordinary Shares are held by the Company as treasury shares for the purpose of executive remuneration. Therefore, as at 29 November 2017, the total voting rights in the Company are 1,565,200,413 and this figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change in their interest in, the Company under the Disclosure and Transparency Rules of the UK Financial Conduct Authority.

    The Placing Shares will be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue. As a result of the placing, Bellzone's major shareholder Hudson Global Limited ("Hudson") will have its voting rights diluted from 62.4% to 58.2%.

    The existing Ordinary Shares are admitted to trading on the AIM Market ("AIM") of London Stock Exchange plc ("LSE"). Application will be made to the LSE for the Placing Shares to be admitted to trading on AIM and admission is expected to occur on or around 29 November 2017.


    The Appendix to this announcement (which forms a part of this announcement) sets out further information and the terms and conditions of the Placing.


    Appointment of Joint Broker

    The Board is pleased to announce the appointment of SVS Securities plc as the Company's Joint Broker together with WH Ireland Limited, with immediate effect.


    Notice of Investor Conference Call

    All interested investors are invited to an update call at 9.00am GMT on Friday 24 November 2017, where management will answer queries related to the Placing details as well Bellzone's medium-term business plan. Investors are invited to register their interest to attend the call by email to Simon Edwards by 5.00pm GMT on Thursday 23 November 2017 to receive the dial-in details.


    Mr. Michael Farrow, Chairman of Bellzone, said:

    "Bellzone has for some time been ready to move ahead quickly to normalise operations and complete the promising Ferronickel feasibility study work. Now that the Addendum to our Mining Convention has finally been signed with the full support of the Guinean Government, our legal rights to the world-class Kalia iron ore resource have been affirmed and all medium-term obligations have been clarified.

    The macro environment has turned markedly positive this year. Metals prices, especially base metals, have stabilised. Most importantly, Guinea has been successful in cementing continuing IMF support via a 3-year External Credit Facility through 2020, as well as in obtaining unequivocal significant commitment from China worth over US$20 billion, to invest without delay in Guinea's national infrastructure and critical mining industry. We believe Bellzone is well-positioned to benefit from the expected economic impetus.

    The resulting positive market response has meant we have been able to capitalise on renewed investor confidence to re-open equity financing options as an alternative to Bellzone's reliance over the last 3 years on a succession of loans from Hudson. I hope this will lead to enhanced market liquidity and thereby an increase in overall shareholder value. With this firm footing achieved, we can now focus fully on achieving our clear near-term objectives and start to engage with potential partners for the longer-term.

    On behalf of the Board, I sincerely thank our existing shareholders, especially Hudson for its unwavering commitment and I welcome all our new shareholders as we embark on what will without doubt be an exciting year ahead."
     
  7. Groucho

    Groucho Member

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    Julian Cheong, CEO and CFO of Bellzone Mining PLC (AIM #BZM) interview https://bit.ly/2EExNY1 @Share_Talk
    In this is a 33-minute in-depth company #Podcast Julian explains why he feels the company is so undervalued & what the future holds moving forward.

     
  8. Groucho

    Groucho Member

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    (Interview starts at 10 minutes 3 seconds)
     

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