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 producer focused on the high value minerals of zircon and leucoxene, and owns the newly commissioned Keysbrook Mineral Sands Mine, 70 km south of Perth in Western Australia.
Development of Keysbrook was completed ahead of schedule and within budget in October 2015, and completed its first shipment of zircon concentrate in December 2015. Keysbrook is designed to produce approximately 96,000 tonnes of zircon concentrate and leucoxene annually, with over 85% of all planned production committed under offtake contracts with blue chip international customers.
MZI Resources Ltd