Zanaga Iron Ore Co Ltd (AIM:ZIOC, FRA:6ZA) told investors that talks with Red Arc Minerals continues, and Red Arc has provided evidence of significant progress towards securing strategic financing of up to US$500m, from a government-backed development finance institution (DFI)
The DFI has issued a letter of intent covering up to US$500 million of potential financing for its flagship project in the Republic of Congo, Zanaga added.
Red Arc Minerals, which is pursuing a strategic equity investment in the Zanaga project, and Zanaga have extended the deadline for completing their proposed transaction to 30 November 2026 while the prospective investor consortium aligns its objectives.
The company cautioned that the letter represents an expression of interest rather than a committed facility. Any investment remains subject to the agreement of documentation, with no certainty that funding will proceed or on what terms.
Meanwhile, operationally, earthworks and logistics partners have started mobilising for bulk sampling. The programme will help optimise the processing flowsheet and define the equipment required to produce DRI-grade pellet feed.
Zanaga presently holds a 100% interest in the permitted project, which contains a 6.9 billion-tonne resource and 2.1 billion-tonne reserve and is designed to produce up to 30 million tonnes annually across two development stages.
