Resource Capital invests $3m in Australia's MZI Resources

According to a filing, the increase in the facility will provide MZI with enough funds to continue engineering, offtake negotiations, and finalize documentation for its flagship Keysbrook mineral sands project near Perth. As part of the deal RCF has also agreed to extend the repayment date of the facility to September 30, 2014.

The Keysbrook project, which is located 70 kilometers outside of Perth, is an advanced zircon and leucoxene rich mineral sands project. It is expected to become one of the largest producing leucoxene mines in the world. Leucoxene is used to produce titanium pigment for paint and plastics as well as titanium metal and flux for welding electrodes. Zircon is primarily used in ceramics and porcelain.

RCF is MZI's largest shareholder with a 17.1% stake. Pending Foreign Investment and Review Board approval of issuing shares to pay off debts and associated fees, RCF's interest in MZI will increase to about 19.9%.

Founded in 1998, RCF has provided financial support to approximately 118 mining companies and mining-services companies to date, across 40 countries and 28 commodities.

RCF is currently investing its sixth fund, Resource Capital Fund VI, with committed capital of $2.04 billion. The firm had $800 million in assets under management as of December 2012 through its three other active private equity funds.

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• Topics
• Australasia
• Industrials
• Expansion
• Commodities
• resources
• Australia
• Growth capital