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MZI Resources In Trading Halt, “Proposed Financing Arrangement” Update

MZI Resources (ASX: MZI) may be placing the final pieces of funding for its Keysbrook mineral sands project in Western Australia together with the grant of an ASX trading halt while it prepares an update on proposed financing arrangements.

The company had previously noted that it was completing the debt funding agreement with its two Joint Lead Arranger (JLA) banks.

It had earlier this month secured a US$41.5 million (A$43.9million) equity funding package from highly regarded resources private equity fund Resource Capital Fund (RCF).

The halt will remain in place until the opening of trade on Tuesday 15th October 2013, or earlier if an announcement is made to the market.

Keysbrook Minerals Sands Project

The Keysbrook Project promises to transform MZI into a substantial mineral sands producer with strong cashflow and a pipeline of growth projects.

It will produce an average 91,000 tonnes per annum of mineral sands products from 110,000 tonnes of dry heavy mineral concentrate.

Proved and Probable Ore Reserves of 26 million tonnes grading 2.6% for in situ total heavy minerals of 670,000 tonnes is sufficient for a mine life of 5.5 years with potential to extend mine life to more than 15 years.

The concentrate will be trucked about 120 kilometres to Doral's mineral separation plant, which is just 10 kilometres from the Bunbury Port, for toll treatment.

Keysbrook has total development costs of A$64.3 million and is expected to have LOM average operating costs of A$34.1 million per annum, or A$379 per tonne of product.

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