LONDON--Bellzone Mining PLC (BZM.LN), a exploration company,
said Thursday it has signed a life of mine offtake agreement with
Glencore International (GLEN), for the Company's 50% share of the
Fe production from the Forecariah joint venture project in
Guinea.
MAIN FACTS:
-The terms of the Agreement are based on the 58% Fe Yomboyeli
product specification.
-The pricing mechanism contains an incentivised component to
achieve best price.
-The incentive component is based on percentage sharing by
Glencore and Bellzone of the difference between the actual price
achieved and the provisional payment made to the Company on ship
loading, adjusted for Fe pricing changes of the Platts IDOEX Fe CFR
China benchmark, and any internal penalties or bonus provisions for
grade, lump/fines content or deleterious material content as per
the agreed product specification.
-The Agreement provides for Bellzone to be provisionally paid
for any shipment on loading with the balance being adjusted against
actual sale price.
-In conjunction with the offtake contract, a prepayment drawdown
facility of $15 million has been made available to Bellzone by
Glencore.
-The Facility is available to Bellzone once the Company has
shipped a minimum of 750,000 wet metric tonnes or five vessels.
-The Agreement envisages the first export in early 4Q.
-Shares at 0651 GMT unchanged at 15 pence valuing the company at
GBP109 million.
-Write to Mark Shapland at mark.shapland@dowjones.com
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