PERTH (miningweekly.com) – ASX-listed mineral sands developer MZI Resources has inked finance agreements of up to A$110-million for the development of its Keysbrook project, in Western Australia.
The company said on Thursday that it had executed a $45-million senior debt and working capital facility agreement, as well as a $12-million bank guarantee facility, and a foreign exchange hedging facility to protect the project from adverse exchange rate movements.
In addition, a $58-million funding package had also been provided by Resource Capital Fund, after shareholder approval at a general meeting held on November 7.
MZI CEO Trevor Matthews said on Thursday that the project funding packages provided the forecast cash required to complete the construction, commissioning and ramp-up of the Keysbrook project through to full production and a positive cash flow.
“The package also ensures MZI will have sufficient funds to meet its corporate costs through the construction phase,” Matthews said.
The drawdown of the funding package was expected to start shortly upon the satisfaction of the remaining prerequisites, including the execution of an offtake agreement and other customary conditions.
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 had been estimated at A$422/t of product.