MZI taps shareholder for more funds

Mineral sands miner MZI Resources has tapped its major shareholder, Resource Capital Funds, for a $US5 million ($A6.7 million) debt financing deal to expand the mining area at its Keysbrook operation near Serpentine.

Perth-based MZI said the debt financing was provided by RCF on on market competitive terms and conditions.

The funds will be combined with a previous $US16 million debt funding package provided to MZI by RCF in November last year.

“The injection of funds at this time enables the company to pursue further arrangements with landowners for mining access in line with the company’s long-term mine plan,” interim managing director Stephen Ward said.

“This strategic action is a key part of our forward planning for Keysbrook.

“We thank RCF for their ongoing support which demonstrates a real vote of confidence in the Keysbrook operations and their future.”

MZI shares were unchanged at 20 cents each at 12:35pm.