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MZI Resources to provide update on Keysbrook Project financing

Published: 19:00 02 Sep 2014 AEST

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MZI Resources (ASX:MZI) has been granted a trading halt by the ASX pending an announcement in relation to the Keysbrook mineral sands project financing. The project is located in Western Australia.

MZI shares are currently in pre-open.

Last month the company secured an additional US$3 million in short-term loan facilities from largest shareholder the Resource Capital Fund VI L.P. (RCF).

RCF has also agreed to extend the repayment date of the Facility to 30 September 2014.

The increase will ensure that MZI has sufficient funds to continue the engineering, L88 offtake negotiation and finalise funding documentation for Keysbrook.

The Keysbrook Project is located 70 kilometres south of Perth, and is characterised by its high leucoxene content, and has the potential to be one of the world’s largest producers of the premium Leucoxene 88 product.

It could produce an average 91,000 tonnes per annum of mineral sands products from 110,000 tonnes of dry heavy mineral concentrate.

This would be trucked about 120 kilometres to Doral’s mineral separation plant, which is just 10 kilometres from the Bunbury Port, for toll treatment.

Offtake agreements are already in place for 50% of the forecast annual revenue from Keysbrook and approximately 60% of forecast annual production.

The halt will remain in place until the opening of trade on Thursday 4th September 2014, or earlier if an announcement is made to the market.

 

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