WORLD TITANIUM RESOURCES LTD MDL's primary asset is a 50% interest in the TiZir joint venture ('TiZir'), which owns the Grande Côte mineral sands operation ('GCO') in Senegal, West Africa and the TiZir Titanium & Iron ilmenite upgrading facility ('TTI') in Tyssedal, Norway. ERAMET of France is MDL's 50% joint venture partner in TiZir.
As foreshadowed (ASX Release: 4 March 2016), Mineral Deposits Limited ('MDL') has sold its interest in World Titanium Resources Limited realising approximately A$6.45 million.
As announced (ASX Releases: 11 December 2015, 21 January 2016), a number of amendments to the TiZir Bond Agreement were approved at a meeting of Bondholders in December 2015. One of the conditions in reaching an agreement with Bondholders was that MDL and ERAMET establish a US$60 million committed facility in favour of TiZir (US$30 million from each of ERAMET and MDL) for the payment of interest and principal under the bond issue. The entire US$60 million facility is to be underwritten by ERAMET.
In respect of the interest payment due to Bondholders at the end of March, MDL and ERAMET have advanced
US$12.4 million (US$6.2 million each) to TiZir to enable this payment to be made. ERAMET has funded MDL's contribution on similar terms to those announced previously (ASX Release: 6 January 2016).
Mineral Deposits Limited ABN 19 064 377 420
Level 17 530 Collins Street Melbourne VIC 3000 Australia T +613 9618 2500 F +613 9621 1460 E mdlmail@mineraldeposits.com.au W mineraldeposits.com.au
Mineral Deposits Limited (ASX: MDL) is an Australian based mining company in the business of mining, integrating and transforming mineral sands resources.
MDL owns 50% of the TiZir joint venture in partnership with ERAMET of France. The TiZir joint venture comprises two integrated, operating assets - the Grande Côte mineral sands operation ('GCO') in Senegal, West Africa and the TiZir Titanium & Iron ilmenite upgrading facility ('TTI') in Tyssedal, Norway.
GCO is a large‐scale, cost competitive mineral sands operation located in Senegal that is fully integrated from mine‐to‐ship, using owned or controlled infrastructure. GCO commenced mining activities in March 2014 and, over an expected mine life of at least 25 years, will primarily produce high quality zircon and ilmenite. A majority of GCO's ilmenite is sold to TTI. GCO also produces small amounts of rutile and leucoxene.
TTI upgrades GCO ilmenite to produce high‐quality titanium feedstocks which are primarily sold to pigment producers and a high‐purity pig iron, a valuable co‐product, which is sold to ductile iron foundries. TTI benefits from excellent logistics with respect to cheap and clean power access, year‐round shipping capacity and customer proximity.
Forward looking statementsCertain information contained in this report, including any information on MDL's plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute forward‐looking statements.
Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. MDL cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of MDL to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward‐looking statements. These factors include the inherent risks involved in mining and mineral processing operations, exploration and development of mineral properties, changes in economic conditions, changes in the worldwide price of zircon, ilmenite and other key inputs, changes in the regulatory environment and other government actions, changes in mine plans and other factors, such as business and operational risk management, many of which are beyond the control of MDL.
Except as required by applicable regulations or by law, MDL does not undertake any obligation to publicly update, review or release any revisions to any forward‐looking statements to reflect new information, future events or circumstances after the date of this report.
Nothing in this report should be construed as either an offer to sell or a solicitation to buy or sell MDL securities.
Level 17 530 Collins Street Melbourne Victoria 3000 Australia T +61 3 9618 2500
F +61 3 9621 1460
E mdlmail@mineraldeposits.com.au W mineraldeposits.com.au
For further information please contact:
Rob SennittChief Executive Officer T +61 3 9618 2500
E rob.sennitt@mineraldeposits.com.au
Chief Financial Officer T +61 3 9618 2500
E greg.bell@mineraldeposits.com.au
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World Titanium Resources Limited issued this content on 29 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 March 2016 06:35:36 UTC
Original Document: http://www.worldtitaniumresources.com/files/160329-MDL-Financial-Update.pdf
