ZincOx announce financing for Korean Recycling Project

ZincOx Resources plc is up 9% today having announced the signing of a Letter of Intent with Korea Zinc Co Ltd and its affiliate  for the provision of loans amounting to US$50 million for the development of the South Korean Recycling Plant (“KRP”) and an Off-take Agreement to purchase the unwashed zinc concentrate produced from Phase 1 of the KRP development.

The Board is pleased to announce that the Loans, once finalised, together with the existing cash within the business, will allow the Company to move forward with the construction of Phase 1 of the KRP with the intention to achieve first production, on the current development schedule, in Q1 2012.

The KRP will treat 200,000 tonnes per annum of steel waste dust (EAFD) in Phase 1 and produce approximately 70,000 tonnes of zinc concentrate with a grade of 58 per cent zinc and 95,000 tonnes per annum of an intermediate iron product. Capacity will then double under Phase 2 which will be developed following the commissioning of Phase 1. Financing for Phase 2 will be put in place by the Company in due course. ZincOx has staged ten year supply agreements for EAFD with all the electric arc furnace operators in South Korea for both Phase 1 and Phase 2.