ZincOx Resources plc (ZOX)

ZincOx Resources plc (ZOX)

ZincOx Resources plc (ZOX) - ZincOx raises capital to fund recycling project

• Fundraising, subject to shareholder approval, totaling approximately US$120 million to raise:US$72 million in an equity placing and US$48 million through a three year bond facility
• This fundraising, together with current cash and deferred payments receivable from Shaimerden, will be used in the construction of the Ohio Recycling Plant
• The fundraising is subject to shareholder approval, which will be sought at an EGM to be held on 11 July 2008

ZincOx Resources plc today announces that it has conditionally raised approximately GBP36.4 million before expenses in a placing, arranged by Jefferies International Limited. Additionally, on the Company's behalf, Jefferies has arranged a US$48 million three-year bond facility.

The combined capital to be raised pursuant to the Placing and the Bond Facility, together with existing cash resources and the deferred payments receivable in respect of the Shaimerden zinc oxide deposit, will be used for the construction of the Ohio Recycling Plant, where the Company plans to convert zinc-bearing hazardous waste from the steel industry into pig iron, slag and an intermediate zinc-bearing product. Further details of the Ohio Recycling Plant are set out in the preliminary results announcement of 28 April 2008.

Commenting on the announcement, Andrew Woollett, ZincOx's Chairman said:
"We are delighted to have, subject to shareholder approval, funding for use in construction of our first recycling project. This should enable the Company to start production before the end of next year and move the Company a step closer to realising its ambition to become the largest zinc recycling company in the world". 

For more information please go to: www.zincox.com

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