MZI


MZI


MZI Resources

The company announced on 30th November 2015 that it had acquired a substantial shareholding in MZI Resources ("MZI") which is a listed West Australian mineral sands producer (ASX Code: MZI). MZI carried out a $43 million share placement in 3 tranches, the first 2 of which the Company participated in. The Company acquired 10m shares or 6.25% of MZI at an issue price of 40 cents for a total consideration of $4.0 million. The third tranche of the MZI placement (which the company did not participate in) took place in late February 2016 following MZI shareholder approval, which diluted the Company`s interest to 5%.

The Company has funded its participation in the MZI placement by way of a $4 million loan facility extended by the Company`s major shareholder Xingang Resources (HK) Ltd.

MZI has recently commissioned a mineral sands mine at Keysbrook which is 70km south of Perth. It is expected to be a significant producer of leucoxene and zircon with an initial production target of 96ktpa. The project has about a 30 year mine life and is expected to be a high margin long life project with significant expansion potential.