MZI Resources Ltd. Capital Raising Update
03.11.2015 | ABN Newswire
Perth, Australia (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 Timetable
SPP Record Date Monday 26 October, 2015
Tranche 1 Allotment of Placement shares Tuesday 3 November, 2015
Annual General Meeting
(Approval of Tranche 2 shares) Tuesday 24 November, 2015
Tranche 2 Settlement of Placement shares Monday 30 November, 2015
Tranche 2 Allotment of Placement shares Tuesday 1 December, 2015
Extraordinary General Meeting to approve
issue of Tranche 3 shares to RCF * Early/Mid-January 2016
Tranche 3 settlement and allotment* Early/Mid-January 2016
SPP Opening Date Mid-January, 2016
SPP 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. It has an advanced project at Keysbrook, Western Australia.
The Keysbrook project, located 70kms from Perth, Western Australia, is an advanced zircon / leucoxene rich mineral sands project. It has been granted all environmental, development and extractive industry license approvals from the relevant statutory authorities and Shires. Construction commenced early in 2015.
Contact:
MZI Resources Ltd.
Trevor Matthews, Managing Director
T: +61 8 9328 9800
