CIF to finance infrastructure of Bellzone’s iron ore project in Guinea

Monday, 24 May 2010 16:19:38 (GMT+2)

Bellzone Mining Plc, a New Jersey, US-based iron ore miner with iron ore assets in Guinea, West Africa, has announced that it has reached a binding memorandum of understanding (MOU) with China International Fund Limited (CIF) with regard to the financing of the infrastructure required for the Kalia iron project.

Bellzone has defined a maiden inferred iron ore magnetite JORC resource of 2.4 billion mt at its wholly-owned project in Guinea and believes that there could be more than 13 billion mt of reserves in the area.

Under the binding MOU:

* CIF will fund the entire infrastructure required for the Kalia iron project including the rail system, bulk storage facilities, port, port loading facilities, port services and power development required to produce and transport a minimum of 50 million mt per annum of iron ore from the project;

* Bellzone will transfer to CIF - with the agreement of the Guinean Minister of Mines and Geology - an area equal to approximately 50 percent of the Kalia II Prospect and 100 percent of the Faranah permit;

* Bellzone and its subsidiaries will be guaranteed a perpetual priority access right to the use of the infrastructure for the transport and export of the production from the Kalia Iron Project on terms to be agreed between the parties;

* Bellzone and CIF will create a 50:50 joint venture to finance, develop, produce, transport, export and sell iron ore from the Forecariah Permits held by a subsidiary of CIF in southwest Guinea;

* Bellzone agrees that CIF has rights to purchase 100 percent of the off-take from the Kalia Prospect at market price (excluding any proceeds from the Kalia II Prospect transferred to CIF).

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