PERTH (miningweekly.com) – Mineral sands developer MZI Resources has secured an increase and extension to its existing loan facility with Resource Capital Fund VI.
The existing short-term loan would now be increased from $4.5-million to $7.5-million, which would ensure that MZI had sufficient funds to continue the engineering and offtake negotiations for its flagship Keysbrook mineral sands project, in Western Australia, as well as to finalise funding documentation for the project.
The loan facility has also been extended until the end of September this year, while there have been no changes to the interest rate or the security provided under the facility.
The facility would be repaid through a combination of cash and shares, with Resource Capital Fund’s shareholding in MZI increasing from its current 17.1% shareholding to a 19.9% shareholding.
The balance of the facility would be repaid by using proceeds from the new drawdown of funds from a previously approved $42.5-million funding package, also being provided by Resource Capital Fund.
The Keysbrook project was currently slated to produce 91 000 t/y of product from 110 000 t of dry heavy mineral concentrate, over a five-and-a-half-year mine life. The project was expected to require a capital investment of A$61.9-million, while operating costs have been estimated at A$422/t of product.