CAPITAL MARKETS

Equity for debt at MZI

Michael Quinn
Equity for debt at MZI

The raising comprised nearly 107 million shares priced at A40c per share for proceeds of about $45 million, with RCF, a resource sector focused private equity firm holding over 30% of the company prior to the raising, putting in $20.7 million of that total.

 

The funds will be used to pay back a bridging loan of about $US26 million, being the amount drawn of a total bridging facility of $33.5 million provided by RCF.

The $26 million is equivalent to about $A36 million at recent exchange rates.

The $9-10 million balance of the raising announced today will go to working capital.

MZI indicated its belief the raising would help attract new investors to the story.

MZI’s key asset, the Keysbrook mineral sands project on the outer doorstep of the Western Australian capital city of Perth, is currently in the final throes of construction, with potential sales of first product happening by the end of the year.

The project is costing about $76 million to build and is forecast to have annual earnings of about $40 million per annum.

Annual average sustaining capital is put at $1.1 million.

Funding for the long-life project was provided by a $US21 million convertible loan provided by RCF, and a $37.5 million facility provided by RMB (Rand Merchant Bank).

Keysbrook will produce two titanium dioxide products, plus zircon.

Prior to this raising being announced the company was capitalised at $A45 million based on a share price of 54c.

 

In terms of recent pricing, the company had spent the past couple of months hovering just below the 40c per share mark, though it enjoyed a significant spike in the days before the company released a market update and promotional documents relating to the raising just completed. 

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.