As advised in its ASX release dated 7 November 2016, the debt funding package will be utilised to provide the Company with financial flexibility to deliver on plant enhancements and optimisation activities at the Keysbrook Project.
MZI Chairman Rod Baxter said: "We are extremely grateful for RCF's support which will enable us to complete enhancement of the wet concentrator plant and to continue ramping up the Keysbrook Project towards our targeted production rates".
Key terms of the debt - funding package are:
- Interest rate of 10% per annum;
- Secured over the Company's assets for the facility term; and
- Repayment of the funding package within 12 months.
The Company intends repaying the amounts drawn down under the funding package within the next 12 months from cash flows generated from its Keysbrook operations and other available sources during that time.
MZI has been granted a waiver of Listing Rule 10.1 by ASX Limited to permit this new funding package to be secured under the terms of the existing security arrangements in place with RCF and RMB Australia Holdings Ltd, without obtaining further shareholder approval.
The terms of the waiver are set out in the attachment (see the link below) to this announcement.
To view the terms of the waiver, please visit:
About MZI Resources Ltd
MZI Resources Ltd (ASX:MZI) is a mineral sands company focused on the high value minerals of zircon, rutile and leucoxene based in Perth, Western Australia. Its flagship operating asset is the Keysbrook Mineral Sands Project, located 70km south of Perth. At the Keysbrook mine, mineral sands are mined and processed to produce heavy mineral concentrate (HMC) which is processed into final products under a toll treating arrangement with Doral Mineral Sands Pty Ltd at the Picton Mineral Separation Plant (MSP) near Bunbury.
The Keysbrook mine hosts a world-class zircon / leucoxene ore body with total Ore Reserves equivalent to over 15 years of production at design output rates, and total Mineral Resources equivalent to over 30 years of production. Production commenced in late 2015, making the Keysbrook Project Australia’s first – and the world’s largest - primary producer of high value leucoxene.
MZI Resources Ltd