Capital Raising Update
Perth, Nov 3, 2015 AEST (ABN Newswire) - MZI Resources Ltd (
ASX:MZI) (MZI or the Company) refers to its announcement on 27 October 2015 regarding a placement of 106,560,036 ordinary fully paid shares in the capital of the Company at $0.40 per share (Placement) and a share purchase plan to existing eligible shareholders to raise $2.0 million (SPP).
The Company's major shareholder, Resource Capital Fund VI L.P. (RCF), has provided a written commitment to acquire shares to the amount of $20.6m in the Placement. The ASX has informed the Company that RCF is a person whose relationship with MZI is, in ASX's opinion, such that ASX Listing Rule 10.11 applies. Accordingly, prior approval of MZI shareholders is required for the issue of shares to RCF under the Placement.
The Company advises that the following adjustments have been made to the tranches comprising the Placement as follows:
- Tranche 1 consists of approximately 8.7 million shares (previously 12.5 million shares). The shares will be issued under MZI's 15% placement capacity in accordance with ASX Listing Rule 7.1. RCF will not participate in this tranche.
- Tranche 2 consists of approximately 67.0 million shares (previously 66.3 million shares) to be issued subject to shareholder approval at the Company's Annual General Meeting to be held on 24 November 2015. RCF has committed to subscribe for approximately 20.7 million shares of the total shares to be issued in tranche 2.
- Tranche 3 consists of approximately 31.1 million additional shares (previously 28 million shares) to be issued to RCF subject to successful completion of Tranche 2 of the Placement and the approval of MZI shareholders. A separate meeting of shareholders will be convened for this purpose. Following the approval of Tranche 3, the Company will open the SPP.
Updated TimetableSPP Record Date Monday 26 October, 2015Tranche 1 Allotment of Placement shares Tuesday 3 November, 2015Annual General Meeting (Approval of Tranche 2 shares) Tuesday 24 November, 2015Tranche 2 Settlement of Placement shares Monday 30 November, 2015Tranche 2 Allotment of Placement shares Tuesday 1 December, 2015Extraordinary General Meeting to approve issue of Tranche 3 shares to RCF * Early/Mid-January 2016Tranche 3 settlement and allotment* Early/Mid-January 2016SPP Opening Date Mid-January, 2016SPP Closing Date Late January 2016
* Dates are indicative only and subject to change.
About MZI Resources Ltd
MZI Resources Ltd (ASX:MZI) is a mineral sands company focused on the high value minerals of zircon, rutile and leucoxene based in Perth, Western Australia. Its flagship operating asset is the Keysbrook Mineral Sands Project, located 70km south of Perth. At the Keysbrook mine, mineral sands are mined and processed to produce heavy mineral concentrate (HMC) which is processed into final products under a toll treating arrangement with Doral Mineral Sands Pty Ltd at the Picton Mineral Separation Plant (MSP) near Bunbury.
The Keysbrook mine hosts a world-class zircon / leucoxene ore body with total Ore Reserves equivalent to over 15 years of production at design output rates, and total Mineral Resources equivalent to over 30 years of production. Production commenced in late 2015, making the Keysbrook Project Australia’s first – and the world’s largest - primary producer of high value leucoxene.
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