Private equity group Resource Capital Funds has emerged as MZI Resources largest shareholder by taking up $3 million worth of the company’s shares.
MZI said the shares were priced at 1.296 cents each, and RCF’s stake in the company would be 12 per cent after the placement.
RCF holds the right to appoint a representative to the MZI board as part of the transaction.
The companies will work together over coming weeks to finalise a broader financing package for MZI’s flagship Keysbrook mineral sands project, located around 70 kilometres south of Perth.
“RCF’s decision to invest in the company is an immense vote of confidence in Keysbrook and will play an important role in securing the full funding for the project’s development,” MZI chief executive Trevor Matthews said.
“MZI is in the process of finalising the Keysbrook debt arrangements with the joint lead arranger banks, and is also assessing proposals for the construction and mining contract works at Keysbrook.
“There is a high level of activity and confidence in the company ,and we look forward to finalising the funding arrangements and moving Keysbrook into development.
MZI said it would now launch a share purchase plan for existing shareholders, also priced at 1.296 cents per share.
The share purchase plan, which is capped at $3 million, is not underwritten, MZI said.
At 1:40PM, WST, MZI shares were steady at 1.4 cents.