PERTH (miningweekly.com) – Martin Purvis has tendered his resignation as MD and CEO of ASX-listed MZI Resources effective immediately, as the company started the process to explore options to realise value at its Keysbrook mineral sands project, in Western Australia.
An interim CEO is expected to be appointed shortly, MZI said on Tuesday.
The company earlier this month told shareholders that it would explore a sale or alternative transaction for the Keysbrook asset, in order to realise value.
The company told shareholders at the time that a new owner would be better placed to build on existing operations within a more conducive capital structure, implement value initiatives, and place greater strategic value on MZI’s product stream, and in doing so deliver ongoing benefits to the Keysbrook stakeholders.
The Keysbrook operation has failed to impress, with chairperson Rod Baxter telling shareholders in November last year that while a number of improvements had been made to the operation, they had failed to uplift the heavy mineral recovery rates, resulting in restricted cash flows and working capital.
The company subsequently implemented a number of changes at the operation, including relocating the Keysbrook mine feed unit to a more central area, in the hopes of reducing the average ore haul distance.
In addition to investigating the sale of the Keysbrook asset, MZI told shareholders that other potential value initiatives will also be investigated, including operational upgrades at the Keysbrook and Picton facilities. The company will also look at options to refinance or restructure its existing debt facilities.