Bellzone Shares Tumble As "No Clarity" On Timing Of Addendum Signing

LONDON (Alliance News) - Bellzone Mining PLC warned of a delay to its provisionally agreed ...

Alliance News 14 September, 2017 | 12:27PM
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LONDON (Alliance News) - Bellzone Mining PLC warned of a delay to its provisionally agreed addendum with Guinea officials, as its file has "inevitably lost precedence" and there is "still no clarity" as to when this addendum will be signed.

Shares in Bellzone were down 20% at 1.4 pence Thursday following the news.

In June it had provisionally agreed an addendum to the 2010 Guinean mining convention for its planned ferronickel project in the country, which was going through an official approvals process with the expectation at that time it would be signed by Guinea ministers and ratified by the Guinea National Assembly in the coming weeks.

It had been informed that at the beginning of August that almost all of the administrative procedures had been completed, with the sole outstanding issue being any impact on national roads of Bellzone's project. Bellzone said that, it understood, this issue had been "satisfactorily address" and no further technical issues remain.

However, unusually heavy rainfall over the last three months, as well as "high-level negotiations to secure international financing and agree new investments in the mining sector" that the government of Guinea has been engaged in, has led to Bellzone's amendment being pushed down in priority.

"The company understands that nothing prevents the Ministry of Mines and Geology Minister from signing expeditiously and all is in readiness to continue the ferronickel project feasibility study when the formalities are completed," Bellzone said.

"The company intends to meet without delay with the MOMG Minister, when his schedule permits, to clarify next steps and a further update will follow," Bellzone added.

By Hana Stewart-Smith;; @HanaSSAllNews

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Bellzone Mining PLC 0.54 GBX -4.34 -
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