15/10/2013 - 09:56

MZI shares lower on debt financing blow

15/10/2013 - 09:56

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MZI Resources says it is in discussions with finance providers following news that one of the two lead arranging banks appointed to provide debt funding for its Keysbrook mineral sands project has withdrawn from the process.

MZI shares lower on debt financing blow
Drilling operations at MZI's Keysbrook operation south of Perth.

MZI Resources says it is in discussions with finance providers following news that one of the two lead arranging banks appointed to provide debt funding for its Keysbrook mineral sands project has withdrawn from the process.

MZI said today that it had commenced discussions with several mining finance banks to secure debt financing in the wake of the withdrawal of the unnamed Australian bank.

The other lead arranging bank, South Africa-based Nedbank Capital, has received credit approval for a 50 per cent share of the project debt finance facilities.

MZI said Nedbank had confirmed its commitment to work with the company to find a new bank to secure the remaining portion of the project finance facilities.

"In a particularly difficult financial market, MZI has been able to secure significant funding arrangements with credible partners," MZI chief executive Trevor Matthews said.

"While the late withdrawal of one of the  appointed lead arranging banks is both disappointed and unexpected, we have instigated the process to install a new lead arranging bank to join with Nedbank and look forward to completing the process as quickly as possible."

MZI earlier this month secured a $US41.5 million project funding deal from international private equity group Resource Capital Fund for the Keysbrook project.

Shares in MZI closed the day 12.5 per cent lower at 1.4 cents.

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