Employee Shares Scheme and Issue of Shares (2002Y)

TIDMBZM

RNS Number : 2002Y

Bellzone Mining PLC

21 December 2010

Bellzone Mining plc

("Bellzone" or the "Company")

Adoption of Employee Shares Scheme and Issue of Shares

Further to the stated intention in the Company's AIM admission document to adopt an employee share scheme as soon as practicable, Bellzone Mining plc (AIM:BZM), the iron ore and nickel/copper company developing the Kalia Iron Mine in the Republic of Guinea, West Africa is pleased to announce that 10,000,000 ordinary shares of no par value that rank pari passu with the existing ordinary shares of the Company ("Ordinary Shares"), were today issued at GBP0.01 each to the Bellzone Employee Share Plan Trust ("ESPT").

The ESPT trustees will award paid up shares over the next 48 months to incentivise the team in driving the development of the flagship Kalia Mine and other development projects after considering recommendations from the Board of Directors' Remuneration Committee. Employees are incentivised by having paid up shares nominally allocated at current prices which may be issued by the ESPT at a future date, ranging between 12 and 48 months hence, dependent on various performance criteria and achievement of specified project milestones. Eligible employees will include senior management and executive directors.

In accordance with the details disclosed in the AIM admission document, the total number of shares eligible for the ESPT will not exceed 10 per cent of the number of issued Ordinary Shares from time to time. This translates to 52,712,449 shares being available for allocation to the ESPT at this time.

Application has been made for the 10,000,000 Ordinary Shares, or 18.9 per cent. of the total number of shares available for allocation to the ESPT, to be admitted to trading on AIM. Admission is expected to take place at 8.00 a.m. on 23 December 2010.

Following admission of the new Ordinary Shares, the Bellzone ESPT will account for 1.86 per cent. of the Company's current issued share capital and the Company now has a total of 537,124,485 ordinary shares in issue, none of which are held in treasury.

Enquiries:

 
Bellzone Mining plc 
 Graham Fyfe/Terry Larkan             +61 8 9420 8900 
Canaccord Genuity Limited 
 Nominated Adviser and Joint Broker 
 to Bellzone 
 Andrew Chubb/Tarica Mpinga           +44 (0)20 7050 6500 
Renaissance Capital Limited 
 Joint Broker to Bellzone 
 Simon Matthews/Thomas Beattie        +44 (0)20 7367 7777 
Conduit PR                            +44 (0)20 7429 6603 
 Jos Simson/Paul Youens               +44 (0)7843 260 623

Bellzone Mining plc

Bellzone Mining plc is an exploration and resource development company with iron ore and nickel / copper permits in the Republic of Guinea, West Africa.

The Company's flagship project, the Kalia Iron Mine has a JORC resource of 3.74 billion tonnes, located on the Kalia I prospect. Drilling results and internal estimates indicate that Kalia Prospect has the potential to host more than 10 billion tonnes of magnetite and 2.55 billion tonnes of oxide at surface.

Exploration work continues to further define the potential at Kalia I on both the magnetite and oxide at surface.

Bellzone is committed to the staged development of the Kalia Iron Project, which includes a 50mtpa iron ore facility, rail and port, with initial production scheduled in 2014. Stage one is planned to bring online 20mtpa direct shipping ore ('DSO') capacity in 2014 and a 10mtpa magnetite concentrator in 2015. Stage two increasing the DSO output to 30mtpa in 2017 and doubling the concentrate capacity to 20mtpa by 2018.

Bellzone signed an Infrastructure Accord with the Republic of Guinea giving the Company exclusive rights to the designated port and rail areas for purposes of conducting studies for the development of the infrastructure leading to the signing of a convention and concession. The infrastructure forms a key part of the Guinea Government's infrastructure strategy and will support the development of iron ore, bauxite and other minerals in Guinea through its availability for 3rd party use.

On 2 August 2010, Bellzone signed definitive agreements with China International Fund ('CIF'). CIF will finance and develop the rail and port infrastructure and offer a finance package to Bellzone for the development of the Kalia Mine in exchange for the first right to purchase 100% of the off-take of the Kalia Mine at market price.

An exploration programme is currently underway at the Forecariah Iron Permits that lie between 40 and 80kms from the Guinea coast. Bellzone and CIF will jointly develop these permits which are prospective for oxide and magnetite. The oxide has the potential to deliver cash flow from a Direct Shipping Ore project in the short term.

Bellzone has competed an intensive mapping and surface sampling programme and has defined highly prospective drilling targets at its Sadeka Nickel/Copper Project and will commence a drilling programme on these targets in Q4 2010.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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