A$45m sale of Keysbrook Mineral Sands Mine to Doral Mineral Sands
On June 28, 2019, the Voluntary Administrators of MZI Resources Ltd (MZI) announced that it had entered into a binding agreement for the sale of the Keysbrook Mineral Sands Mine (Keysbrook) to Doral Mineral Sands Pty Ltd (Doral).
The sale of Keysbrook will occur on a cash free and debt free basis (i.e. Resource Capital Fund VI L.P. and RMB Australia Holdings Limited (RMB) as secured lenders will release security over the sale assets prior to completion).
Doral is a Western Australian based company with existing mineral sands assets and processing operations located in the south-west of Western Australia. Doral is a wholly owned subsidiary of Iwatani Corporation of Japan. Keysbrook is an integrated mineral sands mine located 70km south-west of Perth comprising a mine, processing plant and associated infrastructure to produce a heavy mineral concentrate. The concentrate is processed into final products under a toll treating arrangement with Doral at its nearby Picton Mineral Separation Plant, locate near Bunbury. Keysbrook, first opened in 2015, is the world’s largest primary producer of high value leucoxene.
The transaction completed on 1 July 2019.