MZI secures $64m debt funding

MZI Resources will start construction within months on its Keysbrook mineral sands project in Western Australia after securing a $US64 million debt facility to help fund the development.

The East-Perth based company said the debt facility, in addition to a previously announced $41.5 million loan, meant Keysbrook was now fully funded and that the company would start construction on the project by the end of June.

The debt funding announced today has been fully underwritten by RMB Australia and arranged by RMB Resources, which are part of the South African-based financial services group FirstRand Group.

MZI said the funding was subject to several conditions, including the finalisation of offtake contracts and construction agreement.

The company said these contracts were close to completion or in an advanced stage, and expected the conditions to be met in June.

MZI already has offtake agreements in place for about 60 per cent of its production.

The mine is expected to produce annually 26,000 tonnes of leucoxene 70, 36,200t of leucoxene 88 and 28,700t of zircon over a mine life of five-and-a-half years, with potential for extension.

MZI chief executive Trevor Matthews said the project debt was the final key ingredient needed for the development of Keysbrook after securing US$41.5 million in funding from Resource Capital Fund in October last year.

“In our view, having two highly regarded financial institutions express their confidence in Keysbrook through the provision of funding is a sign of the project’s technical and economic strength,” he said.

Keysbrook is located 70 kilometres south of Perth and product will be exported through Bunbury port.