MZI looks for new funding
PERTH (miningweekly.com) – Mineral sands developer MZI Resources is on the hunt for a new funding source for its Western Australia project after one of the two banks previously involved in its debt financing process decided to withdraw.
MZI CEO Trevor Matthews said on Tuesday that the company was confident that given the substantial funding already in place for its flagship Keysbrook project, which included a $41.5-million funding package from Resource Capital Fund, that it would secure the support from a replacement lender.
“In a particularly difficult market, MZI has been able to secure significant funding arrangements with credible partners. While the withdrawal of one of the appointed lead arranging banks is both disappointing and unexpected, we have instigated the process to install a new lead arranging bank to join with Nedbank and look forward to completing the financing process as quickly as possible,” Matthews said.
South Africa-based Nedbank and the other mandated lead arranging banks, had received credit approval for a 50% share of the Keysbrook project’s debt finance facilities.
Matthews said that Nedbank had continued to express its support for the Keysbrook project, and had confirmed its commitment to continue working with MZI to find a replacement bank.
Resource Capital Fund had also reaffirmed its funding commitment to Keysbrook.
Once in full production, the Keysbrook project would produce 91 000 t/y of product from 110 000 t/y of dry heavy mineral concentrate. First production was scheduled for the December quarter of 2014.
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