(Alliance News) - PYX Resources Ltd said on Friday that L1 Capital Global Opportunities Master Fund invested USD2.5 million in the company to accelerate its production growth plans.

The Idonesia-focused zircon-producing mining company said the investment is further to an initial USD4.5 million investment by L1 Capital Global for USD5 million worth of PYX Resources shares via placement, as announced on March 11.

The latest USD2.5 million investment is in exchange for USD2.8 million worth of PYX Resources shares, taking L1 Capital Global's total subscription amount to be worth USD6.7 million, when offsetting the subscription notices issued by L1 Capital Global on July 7 and October 7 totalling USD1.0 million.

Shares in PYX Resources were down 5.2% to 32.00 pence in London on Friday morning.

PYX Resources said the investment proceeds would be used to grow production volume at its Mandiri deposit in central Kalimantan, Indonesia, alongside starting planning operations at the Tisma deposit, also in Kalimantan.

"PYX is very pleased that L1 remains supportive by increasing its investment. The receipt of these funds enables us to continue to deliver the next phase of our aggressive expansion strategy focused on cementing our position as a key international supplier of premium zircon and take advantage of the robust customer demand we are experiencing for our high-grade product," said Chair & Chief Executive Officer Oliver Hasler.

On Wednesday, PYX Resources said operations commenced at a logistics facility in Port Klang, Malaysia. It said operating from Port Klang over Indonesia would reduce shipping times and costs, alongside improving predictability.

It also announced GBP20 million in capital commitment investment from GEM Global Yield LLC SCS on Tuesday.

By Greg Rosenvinge; gregrosenvinge@alliancenews.com

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