Perth -
MZI Resources Ltd. (ASX:MZI) is pleased to announce it has appointed Northcott Capital Limited (Northcott) as a Corporate Financial Advisor to review the Company's balance sheet and financing structure and, subject to development of an acceptable plan, assist with the delivery of the most appropriate and efficient capital structure for MZI going forward.
MZI's Keybrook Project was a classic counter-cyclical investment which required innovative and complex financing in challenging economic times. With the operational transformation of the Company's business now well advanced and production nearing steady state, it is timely and a natural progression to focus on the balance sheet and financing arrangements as the Company has successfully transitioned from junior explorer to producer. A key step in this transition was announced on 3 May 2017 with the appointment of experienced resources sector executive Mr Martin Purvis as Managing Director commencing 1 July 2017.
This review, to be undertaken with the support of MZI's existing finance providers and major shareholder, is anticipated to take several months to complete. On conclusion, the review is anticipated to deliver a simpler and more efficient fit-for-purpose capital structure suited to MZI's long term future as a major mineral sands producer.
Northcott have been selected to assist MZI after a comprehensive selection process was undertaken by the Company. Northcott has global reach and previous experience working in the mineral sands sector.
MZI Interim Managing Director, Dr Steve Ward commented "The appointment of Northcott and the commencement of this important review process represents another major step forward in the evolution of MZI as our business matures and we start looking to our long term future."
"MZI's well timed counter-cyclical development strategy puts us in a strong position to achieve long term success. Keysbrook's development during the commodities downswing sets it up to capitalise on the clearly improving market conditions ahead for our leucoxene and zircon products. Now is the ideal time to align our capital and corporate structure with the long term requirements of our operational business and position us to consider our options for growth."
"We look forward to providing further updates on the progress of this important process over the coming months."
About MZI Resources Ltd:
MZI Resources Ltd. (ASX:MZI) is a mineral sands producer focused on the high value minerals of zircon and leucoxene, and owns the newly commissioned Keysbrook Mineral Sands Mine, 70 km south of Perth in Western Australia.
Development of Keysbrook was completed ahead of schedule and within budget in October 2015, and completed its first shipment of zircon concentrate in December 2015. Keysbrook is designed to produce approximately 96,000 tonnes of zircon concentrate and leucoxene annually, with over 85% of all planned production committed under offtake contracts with blue chip international customers
Contact:
[wp=929]MZI Resources Ltd.[/wp
Steve Ward Interim Managing Director
T: +61-8-9328-9800
www.mzi.com.au
