REG - Zanaga Iron Ore - Corporate and Project Update

Zanaga Iron OreAnnouncement

28/03/2024 16:15

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RNS Number : 7866I  Zanaga Iron Ore Company Ltd  28 March 2024

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.

 

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