Mar. 8, 2010
Mineral sands concentrate developer Matilda Zircon has finalised a US$2.5 million funding package with Hong Kong based mineral sands processor and distributor Tricoastal Minerals (Holdings) Company Limited.
The funding, which is a combination of debt and equity, will primarily be used to take Matilda's high grade Tiwi Islands zircon asset into production during the second quarter this year.
Matilda Zircon Chairman, Mal Randall, said today the funding agreement with Tricoastal will underpin the development of the Tiwi Islands operation.
"Matilda has also entered into an exclusive off-take agreement with Tricoastal for all concentrate production from the Tiwi Islands at a price based on the ruling market price for zircon and rutile product. The agreement is initially for five years and will be enlarged to include all future concentrate production from Matilda's other operations," Mr Randall said.
"Tricoastal have a large processing and distribution presence in China and they have been a strong and reliable purchaser of mineral sands from Australia, which will be of immediate value for Matilda."
"Through this funding arrangement we have secured the capital to drive the Tiwi Islands project toward production, and a long term partner with valuable operations and expertise in process and marketing mineral sands product," he said.
The package will include an immediate US$500,000 investment this month by way of share placement involving 36 million shares and 36 million 5 cents options expiring on 30th June 2012. On completion, Tricoastal will be a 7.53% shareholder in Matilda.
A further US$2 million will be provided via an interest free loan repayable at a rate of 5% per shipment of product, or in three years (whichever comes first). The funding will be provided in two US$1 million tranches, one in late March 2010, and the second in late April 2010. The two loans are subject to satisfactory due diligence by Tricoastal.
Matilda will also appoint Nathan Wong of Tricoastal as a non-executive director, adding a closer link between the two companies.
Based in Hong Kong, Tricoastal manages one of the largest mineral separation capacities in China, which includes rutile, ilmenite and zircon sand.
The Company operates seven mineral separation and milling plants, with mineral sands capacity of more than 250,000 tonnes annually and also has a comprehensive sales network throughout China.
Along with the Tiwi Islands project in the Northern Territory, Matilda is also developing a significant leucoxene project near Keysbrook, Western Australia.
Matilda's major shareholder is West Australian resource developer Stirling Resources Limited.
Mineral sands concentrate developer Matilda Zircon has finalised a US$2.5 million funding package with Hong Kong based mineral sands processor and distributor Tricoastal Minerals (Holdings) Company Limited.
The funding, which is a combination of debt and equity, will primarily be used to take Matilda's high grade Tiwi Islands zircon asset into production during the second quarter this year.
Matilda Zircon Chairman, Mal Randall, said today the funding agreement with Tricoastal will underpin the development of the Tiwi Islands operation.
"Matilda has also entered into an exclusive off-take agreement with Tricoastal for all concentrate production from the Tiwi Islands at a price based on the ruling market price for zircon and rutile product. The agreement is initially for five years and will be enlarged to include all future concentrate production from Matilda's other operations," Mr Randall said.
"Tricoastal have a large processing and distribution presence in China and they have been a strong and reliable purchaser of mineral sands from Australia, which will be of immediate value for Matilda."
"Through this funding arrangement we have secured the capital to drive the Tiwi Islands project toward production, and a long term partner with valuable operations and expertise in process and marketing mineral sands product," he said.
The package will include an immediate US$500,000 investment this month by way of share placement involving 36 million shares and 36 million 5 cents options expiring on 30th June 2012. On completion, Tricoastal will be a 7.53% shareholder in Matilda.
A further US$2 million will be provided via an interest free loan repayable at a rate of 5% per shipment of product, or in three years (whichever comes first). The funding will be provided in two US$1 million tranches, one in late March 2010, and the second in late April 2010. The two loans are subject to satisfactory due diligence by Tricoastal.
Matilda will also appoint Nathan Wong of Tricoastal as a non-executive director, adding a closer link between the two companies.
Based in Hong Kong, Tricoastal manages one of the largest mineral separation capacities in China, which includes rutile, ilmenite and zircon sand.
The Company operates seven mineral separation and milling plants, with mineral sands capacity of more than 250,000 tonnes annually and also has a comprehensive sales network throughout China.
Along with the Tiwi Islands project in the Northern Territory, Matilda is also developing a significant leucoxene project near Keysbrook, Western Australia.
Matilda's major shareholder is West Australian resource developer Stirling Resources Limited.
