28
March 2024
Corporate and Project
Update
Zanaga Iron Ore Company Limited
("ZIOC" or the "Company") (AIM: ZIOC), is pleased to
provide an update on the Company's review and re-costing of the
2014 Feasibility Study ("2014 FS"), an agreement to revised
repayment terms on its loan from Glencore, and appointment of Shard
Capital Partners LLP as Joint Corporate Broker.
Zanaga Iron Ore Project update (the
"Zanaga Project")
The Company is pleased to provide an update to
shareholders on the timing of the Company's FS update process with
its Chinese EPC Partner.
1) FS update
process
a) The review and re-costing
phase of the 2014 FS has been completed and a near-final report has
been received from the Company's Chinese EPC Partner, and this has
progressed to peer and ZIOC board review.
b) The final results of the
2014 FS update are expected to be announced during April
2024.
2) FEED phase
preparation
a) Preparation for the Front
End Engineering and Design (FEED) phase of the Zanaga Project is
underway, including solicitation of cost and schedule estimates for
the various workstreams associated with the FEED phase.
3) Other strategic
initiatives
a) In September 2023, the
Company outlined its strategic objectives, including the intention
to secure MoUs with a number of potential partners to progress the
Zanaga Iron Ore Project. An update on each MoU workstream is
provided below:
i) Hydro power MoU:
signed with CMEC (announced on 29 December 2023)
ii) Port MoU: Significant
progress has been made in securing interest from large scale port
development companies interested in participating in the
development of port infrastructure for the Zanaga Project. In
parallel with the 2014 FS update process, these discussions are
progressing.
iii) Strategic partner initiative:
the Company is pleased to have received, interest in the
development of the Zanaga Project from a number of parties.
Discussions continue and the Company will provide further updates
in due course.
Glencore loan update
Further to the Company's announcement on 2
January 2024 relating to the loan facility agreement between
Glencore and ZIOC, under which a loan was provided directly to
Jumelles Ltd by Glencore to provide funding for ongoing working
capital required to progress initiatives at the Zanaga Project (the
"Loan Facility"), Glencore and ZIOC have agreed to extend the
repayment date of the Loan Facility to 31 July 2024.
ZIOC has repaid US$700,000 of the Loan Facility
during Q1 2024, leaving an outstanding balance, including accrued
interest, of US$726,384.
Funding update
On 2 July 2023, the Company entered into an
Equity Subscription Agreement with Shard
Merchant Capital Ltd ("SMC") (the "2023 ESA").
Under the Subscription Agreement, the Company will
issue and SMC will subscribe for 36 million ordinary shares of no
par value in the Company in three tranches of 12 million shares
each. The First tranche was issued immediately on 1 July 2023 and
the Second Tranche was issued 14 December 2023. These two tranches,
totaling 24 million ordinary shares in the Company have been placed
by SMC. As a result of such transactions, the Company has received
net proceeds of £1,667,735.
Proceeds of the Shard ESAs are
applied to general working capital, including the provision of
further contributions to the Zanaga Project's
operations.
The Company has cash on hand of US$491,000 as
of 28 March 2024.
Appointment of Shard Capital as Joint
Broker
Zanaga is pleased to announce that it has
appointed Shard Capital Partners LLP as joint Corporate Broker with
immediate effect.
Shard Capital Partners LLP commented:
"The Zanaga story is one we are committed to and
have been following closely for some time. It is without doubt a
world class iron ore project, with a fantastic team and we look
forward to working with them to unlock what we see as major
potential value for shareholders."
Clifford Elphick, Chairman of ZIOC
commented:
"ZIOC is pleased with the progress of the FS
update which is nearing completion. This is regarded as being key
to further engagement of strategic partners.
I am also pleased to report that ZIOC has made a
further repayment of the outstanding Glencore loan, and continues
to receive the support of Glencore going forward through the
extension of the loan repayment date.
In addition, I am delighted to announce the
appointment of Shard Capital as Joint Broker to the
Company."
THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF
ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH
THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR
The Zanaga Iron Ore Company Limited
LEI number is 21380085XNXEX6NL6L23.
For further information, please
contact:
Zanaga Iron Ore
Corporate Development and
Andrew Trahar
Investor Relations
Manager
+44 20 7399 1105
Liberum Capital Limited
Nominated
Adviser
Scott Mathieson, John More
and Corporate Broker
+44 20 3100 2000
Shard Capital Partners LLP
Corporate
Broker
Damon Heath
+44
207 186 9952
About us:
Zanaga Iron Ore Company Limited (AIM
ticker: ZIOC) is an iron ore exploration and
development company, with the Company's flagship asset being its
100% owned Zanaga Iron Ore Project located in the Republic of
Congo, for which the Government Mining Licence, Environmental
Permit and Mining Convention are all in place.
A major Project update is underway to freshen
historical studies in light of changes in the world's economy and
growing demand for low-carbon steel production, for which the
Zanaga resource is highly suited, with the potential to become one
of the largest producers of high grade premium pellet feed iron
ore.