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Administrators appointed to MZI Resources

Administrators have been appointed to MZI Resources, the listed owner of the Keysbrook mineral sands mine south of Perth.

However, the appointment does not apply to the mine, which was already on the market, or MZI’s subsidiaries.

Joint administrator Rob Kirman, from insolvency firm McGrathNicol, said MZI’s secured lender “has indicated it will support allowing the operations of the group to proceed uninterrupted while efforts to conclude a sale and/or recapitalisation process continue”.

“Importantly, the trading and operations of the Keysbrook mine remain unaffected and under the control of existing management,” he said.

Shares in MZI were put into a trading halt in mid-March, pending the outcome of talks with its lenders Resource Capital Fund and RMB Australia Holdings over additional funding. Since the beginning of the year, it has lost its managing director and three non-executive directors.

Keysbrook entered production in 2015, turning out a heavy concentrate which is processed into zircon, rutile and leucoxene at Doray Mineral Sands’ plant at Picton near Bunbury.

MZI’s December-half loss nearly tripled to $32 million despite near-doubled sales revenue of $34 million. The loss included finance costs of nearly $15 million.

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