News: MZI Resources: Resource Capital Fund extends interim facility

MZI Resources (ASX:MZI) has advised that Resource Capital Fund VI has agreed to extend the repayment date for the Interim Loan Facility to 31 July 2014.

The company plans to repay the Facility from the draw-down of funds from the RCF US$42.5 million funding package, which received shareholder approval last month and has been cleared by the Foreign Investment Review Board.

RCF had previously extended repayment on the loan to 14 July from 30 June.

MZI is fully funded for development and construction of the project with first production expected 52 weeks from a decision to proceed with the project.

The Keysbrook Project is located approximately 70 kilometres south of Perth, is characterised by its high leucoxene content, and once in operation will be one of the world’s largest producers of the premium Leucoxene 88 product.

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

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

Offtake agreements are already in place for 50% of the forecast annual revenue from Keysbrook and approximately 60% of forecast annual production.