Bellzone Mining fails to find long-term funding

11th Aug 2014 10:21

Shares in African iron ore explorer Bellzone Mining plunged almost 30% in early trading on Monday after it failed to secure long-term financing.The group, which has its flagship Kalia project in the Republic of Guinea, said however that it was in advanced talks with China Sonangol to secure a $4m short-term loan.An earlier £1.1m share placing by Sonangol enabled Bellzone, which focuses on the Republic of Guinea, to continue its operations until early August. "Although not yet finalised, the $4m loan would be secured against the Kalia project, and would be expected to allow operations to continue until late October 2014," a brief statement from the group read. "This short-term funding is required in the immediate future for the company to continue its operations," it added. Shares slumped 29.2% to 1.20p by 09:28. NR