TIDMZOX TIDM51OX

RNS Number : 5694G

ZincOx Resources PLC

02 July 2012

2 July 2012

ZincOx Resources plc

("ZincOx" or the "Company")

Standard Chartered Bank mandated for the expansion of ZincOx's Korean Recycling Plant

ZincOx is pleased to announce that it has entered into a mandate with Standard Chartered Bank to restructure, arrange and underwrite project debt for the doubling of capacity through the development of the second and final Phase of the plant. This follows the successful commissioning of Phase 1 of the Company's Korean Recycling Plant ("KRP") which is ramping up to full production. This mandate represents an important step in the Company's progress towards the full financing and implementation of Phase 2.

ZincOx holds binding 10 year exclusive contracts with Korean steel mills for the supply of Electric Arc Furnace Dust ("EAFD") amounting to approximately 400,000 tonnes per annum. The steel mills agreed to the development in two phases and EAFD is now being collected and treated in the Phase 1 plant thus saving the steel mills considerable landfill fees.

The engineering for Phase 2, which largely replicates Phase 1, has already commenced and construction is planned to commence later this year, in order for the two phases to be in a position to process all EAFD produced in Korea in the last quarter of 2013.

Standard Chartered Bank is a major global bank with significant experience in the arrangement and provision of development loans with strong connections in Korea. Standard Chartered Bank has already retained its Technical Advisers for the independent review of the operation. Both the Bank and its Technical Advisers recently visited Phase 1 of KRP. In addition, the lawyers for the various parties have been instructed in order to ensure a timely provision of finance in line with the rapid development of Phase 2.

Depending on the zinc price at the time of drawdown, the mandate envisages a total debt facility of up to US$120m, which remain subject to final credit approval and documentation.

Commenting on the announcement, Andrew Woollett, the Chairman of ZincOx, said: "We have been working with Standard Chartered Bank for several months and having demonstrated the process, I am delighted to have a bank of their calibre behind the project. Furthermore, we expect the relationship established for KRP may lead to Standard Chartered Bank's involvement in other similar projects elsewhere in the world. Standard Chartered Bank's willingness to study the project and retain its Technical Advisers even before the binding mandate was completed, demonstrates to me its commitment to support our fast track development plans."

For further information please visit http://www.zincox.com/ or contact:

 
ZincOx Resources plc                        Tel: +44 (0)1276 450 
                                             100 
Andrew Woollett, Executive Chairman 
 
Peel Hunt LLP (Nominated Adviser and Joint  Tel: +44 (0)20 7418 
 Broker)                                     8900 
Richard Kauffer 
 Daniel Harris 
finnCap Limited (Joint Broker)              Tel: +44 (0)20 7220 
 Matthew Robinson                            0500 
 Joanna Weaving 
Tavistock Communications                    Tel: +44 (0)20 7920 
                                             3150 
Lydia Eades 
 Simon Hudson

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCEAKKNAENAEFF

Zincox (LSE:ZOX)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Zincox Charts.
Zincox (LSE:ZOX)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Zincox Charts.