MZI Resources (ASX:MZI) has received advice from the Foreign Investment Review Board that it has no objections to the US$42.5 million funding package from Resource Capital Fund VI for its Keysbrook mineral sands project in Western Australia.
This follows MZI shareholder approval for the funding package on 27 June.
The company is fully funded for development and construction of the project with first production expected 52 weeks from a decision to proceed with the project.
Besides approving the funding package, MZI’s shareholders have also approved the conversion of US$1 million of the US$4.5 million interim loan facility into shares as well as the issue of shares to RCF as payment of the extension fees for the facility.
RCF had agreed to extend the facility repayment date to 14 July 2014 from 30 June 2014 with no changes to the interest rate or security being provided.
MZI plans to repay the Facility from the draw-down of funds from the Keysbrook Funding Package.
Keysbrook Mineral Sands Project
The Keysbrook Project located approximately 70 kilometres south of Perth, is characterised by its high leucoxene content, and once in operation will be one of the world’s largest producers of the premium Leucoxene 88 product.
It will produce an average 91,000 tonnes per annum of mineral sands products from 110,000 tonnes of dry heavy mineral concentrate.
This will be trucked about 120 kilometres to Doral’s mineral separation plant, which is just 10 kilometres from the Bunbury Port, for toll treatment.
In addition to the RCF funding package, MZI has also secured US$ 64 million in project debt funding from RMB Australia Holdings, part of leading resource financier FirstRand Group.
Offtake agreements are already in place for 50% of the forecast annual revenue from Keysbrook and approximately 60% of forecast annual production.
MZI Resources continues to rack up the milestones at its Keysbrook Mineral Sands Project.
Share price catalysts ahead include:
- Execute financing agreements;
- Securing offtake agreements for the premium Leucoxene 88 product;
- Signing the final zircon agreement;
- Execution of financing agreements;
- Completion of construction; and
- Start of production.
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