MZI Resources secures landowner agreements for Keysbrook Mineral Sands project

THE BOURSE WHISPERER: MZI Resources (ASX: MZI) has secured the remaining landowner agreements it needs to start development of the company’s Keysbrook Mineral Sands project in the south-west of Western Australia.

The agreements, which have been made with three landowners, give MZI the right to access and mine minerals on the properties involved.

One of these properties is the designated site where the concentrator, site access road and associated infrastructure will be located.

MZI said the access and mining rights under the landowner agreements have combined with existing landowner agreements and company owned property to support the Ore Reserve life of the project.

The company said it was now very close to securing the finance for Keysbrook.

“This project has a short construction period compared with most resource projects,” MZI Resources chief executive officer Trevor Matthews said in the company’s announcement to the Australian Securities Exchange.

“With the key agreements either finalised or very close to completion, Keysbrook is now only about a year away from generating substantial cashflow for the company and its shareholders.”

The landowner agreements follow MZI’s announcement earlier this week that the Board of the Bunbury Port Authority (BPA) has authorised BPA management to negotiate a Port Services Agreement with the company.

MZI said the completion of these agreements continue the achievement of project milestones as it finalises financing arrangements for Keysbrook, including the debt facilities currently being negotiated with two leading banks.

This puts MZI on track to start construction of Keysbrook in this quarter, with first production set for the March quarter of 2014.