Bellzone in Talks to Raise $865 Million for Guinea Ore Mine

Bellzone Mining Plc, an iron-ore producer in Guinea that sells to Glencore Xstrata Plc, is in talks with potential lenders for $865 million to fund development of a new mine in the country.

Initial talks with potential partners have begun and the company is seeking to complete a financing accord early next year as it starts building the Kalia project, Chief Executive Officer Glenn Baldwin said today in an interview in London. The company is being advised by Macquarie Group Ltd.

“There’s a lot of ways of funding a project and we’re trying to address all of those and get the best deal for the shareholders,” he said. “We need to have sufficient confidence in the funding to be able to start” building the mine next year, he said.

Bellzone advanced 12 percent to close at 4.35 pence in London trading, the highest for seven weeks and valuing the company at 32.2 million pounds ($53 million).

Kalia is about 300 kilometers (186 miles) from the capital Conakry and 350 kilometers from the port of Konta.

Bellzone shipped its first ore from Forecariah in December 2012. The mine is a 50-50 venture with China International Fund.

Before it's here, it's on the Bloomberg Terminal.