The West

MZI secures $68m Keysbrook debt

MZI Resources has secured $US64 million ($68 million) financing for its Keysbrook mineral sands project south of Perth, paving the way for construction to begin.

The company said work would start in late June, with production scheduled to begin in mid-2015.

The debt funding underwritten by RMB Australia Holdings comes on top of a $US41.5 million funding package provided by Resource Capital Fund last year.

MZI chief executive Trevor Matthews said the project debt was the final key ingredient needed for the development.

"Having two highly regarded financial institutions express their confidence in Keysbrook through the provision of funding is a sign of the project's technical and economic strength," Mr Matthews said.

"Our feasibility studies show that Keysbrook will generate strong returns, even at this relatively low point in the mineral sands economic cycle."

The financing is also good news for GR Engineering Services, which is the preferred contractor for the $55 million design and construction of the concentrator.

MZI's shares were up 0.2 cents, or 18 per cent, to 1.3 cents at 10.14am. GR Engineering was up 0.5 cents, or 8 per cent, to 70 cents.

The West Australian

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