MZI Resources Directors Increases Stake Under SPP

MZI Resources (ASX: MZI) directors have increased their interests in the company through the subscription of shares under the $3 million Share Purchase Plan.

Non-executive chairman Malcolm Randall and directors Keith Vuleta and Peter Gazzard all increased their indirect interests by 1,157,408 shares.

They each subscribed for the full $15,000 worth of shares under the plan. Each share is priced at $0.01296.

Randall now holds 6,857,408 shares, 500,000 listed options exercisable at $0.025 and expiring 31 December 2013 and 5 million unlisted options exercisable at $0.04 that expire on 31 December 2015.

The acquisition of shares increased Gazzard's stake to 2,193,752 shares and 5 million unlisted options exercisable at $0.04 that expire on 31 December 2015. Gazzard also holds indirect shares through PWLE Pty Ltd (Gazzard S/F A/C) - Trustee and Member.

Amanda Vuleta, an associated person of Keith Vuleta, now holds a stake of 3,157,408 shares and 5 million unlisted options exercisable at $0.04 that expire on 31 December 2015.

The SPP had raised a total of $2 million with MZI placing the shortfall of $956,000 with underwriter Argonaut Capital.

This along with the recently completed $3 million share placement to Resource Capital Funds, the company has raised close to $6 million, putting it in a strong position to progress development of its flagship Keysbrook mineral sands project in Western Australia.

MZI remains in discussions with RCF concerning the funding package that will help underpin development of the project.

Progress made by the company on the project recently include executing the key Port Services Agreement with the Bunbury Port Authority; signing a crucial sales agreement with DuPont Titanium Technologies covering all leucoxene 70% titanium dioxide production; and reaching a mineral sands toll treatment deal with Doral.

The Keysbrook Project will produce an average 91,000 tonnes per annum of mineral sands products, comprising:

- 26,000 tonnes per annum (dry) of leucoxene 70% titanium dioxide;

- 36,200 tpa (dry) of leucoxene 88% titanium dioxide (L88); and

- 28,700 tpa (dry) of zircon concentrate.

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

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