Argonaut Note to their clients about MZI. MZI Resources (MZI)...

Argonaut Note to their clients about MZI.

MZI Resources (MZI) announced that it has restructured financing for its flagship Keysbrook mineral sands project, effectively placing a portion of the bank debt with additional mezzanine funds. Under the restructure, lead bank RMB will reduce its total lending from US$50.0m to US$37.5m and Resource Capital Fund (RCF) will increase its package from US$42.5m to US$58.0m.

Argonaut, views this restructure as a negative outcome as it increases the likely dilution in the near term, increases the cost of capital and will delay development due to the requirement for renewed shareholder approval. The Company is believed to be nearing an agreement on an offtake contract on the Leucoxene 88% TiO2 (L88) product, with final documentation anticipated in October.