ZincOx Resources PLC Development Loan Restructuring (6250Q)
September 03 2014 - 2:00AM
UK Regulatory
TIDMZOX
RNS Number : 6250Q
ZincOx Resources PLC
03 September 2014
3 September 2014
ZincOx Resources Plc
("ZincOx" or the "Company")
Development Loan Restructuring
ZincOx Resources plc, (AIM:ZOX) the developer and operator of
one of the largest electric arc furnace dust recycling facilities
in the world, is pleased to announce that it has finalised an
agreement with Korea Zinc Company Ltd ("Korea Zinc") to extend the
repayment date of the Development Loan of US$15 million by one year
so that it will now fall due in February 2016. This loan had been
provided by Korea Zinc as part of the financing of the Company's
Korean Recycling Project ("KRP") in return for an offtake of the
zinc oxide produced by KRP. This extension should allow KRP to
generate sufficient cash for the Development Loan to be repaid in
full by this date.
In return for the extension, ZincOx has agreed to increase the
overall volume of zinc oxide to be supplied to Korea Zinc to
840,000 tonnes, an increase of 70,000 tonnes; the effect of which
is to extend the life of the offtake agreement by about one year.
In all other respects the agreements remain unchanged.
The zinc price has continued to strengthen through this year and
the market commentators for base metals still talk of a zinc gap
due to mine closures. The zinc price has risen by more than 21%
over the last year.
The planned inspection and maintenance closure in August has
been completed and KRP has restarted and the Company remains
committed to achieving full production in the fourth quarter of
2014; well timed for the strengthening zinc price.
A further production update will be given at the time of the
half year results scheduled to be announced on 30 September
2014.
Commenting on the announcement;
Andrew Woollett, Chief Executive Officer, said: "We are
delighted that the relationship with Korea Zinc enabled us to agree
this extension and we look forward to increasing cashflow from the
project as we ramp up to full production".
For further information please contact:
Tel: +44 (0) 127 645
ZincOx Resources plc 0100
Andrew Woollett, Chief Executive
Officer
Peel Hunt LLP (Nominated Adviser Tel: +44 (0) 207 418
and Joint Broker) 8900
Richard Kauffer
Daniel Harris
finnCap Limited (Joint Broker) Tel: +44 (0) 207 220
Matthew Robinson 0500
Joanna Weaving
Tavistock Communications (Financial Tel: +44 (0) 207 920
PR) 3150
Simon Hudson
Nuala Gallagher
This information is provided by RNS
The company news service from the London Stock Exchange
END
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