Wednesday, October 24, 2012 by Proactive Investors ZYL Limited moves closer to Kangwane Central Bankable Feasibility Study release
Perth based ZYL Limited (ASX: ZYL) which is developing anthracite projects in South Africa has drawn down a $2 million bridging facility.
Previously announced, the bridging facility is a component of a larger $18 million, 35 month term, convertible note facility.
The convertible note facility will provide longer term finance for the company and is conditional upon execution of final documentation by the parties and the usual regulatory approvals.
This included shareholder approval to allow conversion of the convertible notes into ordinary ZYL shares and Foreign Investment Review Board (FIRB) approval.
FIRB approval was granted on 18th October 2012 and the remaining approvals are expected in late November 2012.
The convertible note cannot be converted within the first 12 months of issue.
CEO Ian Benning commented, “We are pleased with the finalisation of bridging facility and the progress of the convertible note facility, which will provide longer term finance for the company”.
Kangwane Central BFS Update - on track for November release
The company provided an update on the Kangwane Bankable Feasibility Study being prepared by RSV Enco, which is steadily getting closer to completion with a release date expected in mid-November.
Early indications are that the Southern Open Pit and Underground Area of the Kangwane Central project, which has been sized to combine an initial open pit and a later underground operation, will have a life-of-mine of around 20 years.
Analysis
Newsflow should start to increase for ZYL with finalisation of the Bankable Feasibility Studies at the Mbila and Kangwane Central projects.
Gaining the recent convertible note funding was significant for the advancement of ZYL's two principal assets going forward, the Mbila and Kangwane Central projects. The release of BFS' are major milestones and catalysts for a project development pathway but potential re-rating triggers for ZYL market cap.
HWK Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
