I believed KZL would always get funding with 20 mill in cash...

I believed KZL would always get funding with 20 mill in cash coming out of escrow in a few weeks time and with the ability to divest the remaining MUX stake for another 10-15 or so. I thought ANZ would have lent the money but clearly things are much more desperate for them than I thought. I was wrong and looking at Greece we now know why. Wholesale funding dried up.

End result. ANZ out Investec in. So in the end they got their funding one way or another. It remains to be seen whether the intro of Investec is a good thing. Can't be worse than ANZ I guess. The refinance package equals what they were trying to get from ANZ. i.e. 37 mill of refinancing.

However, there is this funny line in the text...

"The Administrators' ultimate decision was based on satisfying the Group's financing requirements in the necessary time frame."

Sounds like they didn't have much choice or time. Investec whilst competitive still won't be cheap. And it's not clear what the rate was or how they will be paid and when etc.

Anyway, funding is better than no funding. However, there is no clue from this announcement what the admin intend to do with the asset base etc, so it's a bit early to be speculating when they might relist or restart mines. If they do indeed at all.

I wouldn't read into this announcement too much. It's a slight positive but there is a long way to go.

It does look like though they are trying to get ANZ paid off and completely out first as a secured creditor then perhaps Credit Suisse. That leaves an army of small unsecured creditors to deal with that removes the risk of a fire sale considerably.

AUD 98c - positive, Zinc - 85c. Still a 13c gap that needs to be halved at the very least.