MZI clinches $64m debt deal for WA project
PERTH (miningweekly.com) – Mineral sands developer MZI Resources on Thursday told shareholders that it had secured some $64-million in project debt facilities for its flagship Keysbrook project, in Western Australia.
The project debt facilities, arranged by RMB Resources, along with the $41.5-million Keysbrook funding package being provided by Resource Capital Fund, meant that MZI was now fully funded for the construction and development of Keysbrook.
MZI would be able to start project construction in late June, with first production scheduled for mid-2015.
CEO Trevor Matthews said on Thursday that having two highly regarded financial institutions express their confidence in the Keysbrook project, through the provision of funding, was a sign of the project’s technical and economic strength.
“Our feasibility studies show that Keysbrook will generate strong returns, even at this relatively low point in the mineral sands economic cycle,” he noted.
The project debt facility agreed to with RMB would comprise a $50-million senior debt facility, a $3-million working capital debt facility and a A$12.124-million bank guarantee facility.
Drawdown of the project debt facility was subject to customary conditions, including MZI finalising the remaining contracts for the Keysbrook development, including offtake contracts and the execution of a construction agreement.
It was expected that the conditions would be satisfied in the June quarter of this year.
MZI has already secured a number of offtake partners for the Keysbrook project, including with shareholder Tricoastal.
Once in full production, the Keysbrook project would produce 91 000 t/y of product from 110 000 t of dry heavy mineral concentrate.
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