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mzi

MZI Resources Ltd. Completes Commissioning and First Product Shipment to Customers

Resource Capital Fund VI L.P.’s (“RCF VI”) portfolio company, MZI Resources Ltd., announced recently that it had completed commissioning and exported the first shipment of mineral sands at its main Keysbrook and Picton plant facilities in Western Australia.

MZI Resources’ shareholders initially approved a $58 million funding package from RCF VI in November 2014, negotiated to support the company’s completion of construction, commissioning and ramp-up at its Keysbrook project through to full production and positive cash flow.

On December 21, 2015, MZI Resources announced its first shipment of Keysbrook mineral sands to customers, approximately one month ahead of the original schedule. Commissioning was completed under budget several days earlier.

RCF Principal, Chris Corbett, said that the firm is pleased to support MZI Resources, particularly through the integral construction phase to the project completion milestone, which will eventually enable positive cash flow for the company.

“RCF is a strategic partner that consistently supports companies throughout market cycles and given that resources is our passion and our area of expertise, it’s always particularly positive when a company that we’ve supported through the development stage begins production,” said Mr. Corbett.

Please visit the MZI Resources website for more information and to read the full company release.

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Strategic Investments Provide Valuable Dimension to RCF Portfolio

When RCF began investing its first fund, the US$41.4 million (M) RCF I almost two decades ago, investments ranged up to $7.7M in size. With US$2.04 billion available to invest in Fund VI, it would be easy to ignore smaller opportunities.  RCF, however, continues to make investments at these levels for a variety of reasons.  These particular investments look for opportunities where a strategic benefit can be gained and may be from any number of areas such as a new commodity or country, an attractive opportunity not yet ready for material funding, or a new deal structure.

As the funds have grown substantially over time and the size of the investments increased significantly to include more advanced projects, RCF has made a conscious decision not to exclude strategic investments from its portfolio which make valuable contributions to the pipeline of new projects in the industry.

RCF Partner, Peter Nicholson, explains that as with any potential opportunity, RCF has the innate ability to be flexible and it is far better for potential portfolio companies to approach the firm with what they need to succeed rather than RCF try and define what may suit.

“When it comes to strategic investments, the benefits for RCF and our portfolio companies are numerous and include the opportunity to establish a relationship and understanding of management teams in the very early stages of a project’s development,” said Peter.

“We also have a deep understanding of a variety of countries as an investment jurisdiction and can support a company’s strategy as their projects are advanced, including the challenges presented throughout exploration, development and funding options through to cash flow from production.”

“Some of our strategic investments made to date have allowed us to gain an understanding of operating in countries such as Russia, India, Cambodia and the UK; with RCF being the driving force behind the first hard rock metals mine development in England in 45 years.  That particular investment, Wolf Minerals Limited, started as a strategic investment into study work of US$1.8M and has resulted in an RCF investment of US$105M and the mine commissioning in late 2015.

Strategic investments remain an important part of the firm’s investment consideration process and remains committed to exploring investment opportunities regardless of initial size.  Since RCF I in 1998, RCF has consistently invested in mining companies throughout market cycles and operates the firm with integrity, discipline and a view to creating long term value for all stakeholders.

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RCF Provides Talon Metals US$15 million to Further Tamarak Project

In late 2015, Toronto Stock Exchange-listed junior developer Talon Metals announced it will use the US$15 million it received from Resource Capital Funds to earn an 18.45% interest in Rio Tinto Group subsidiary Kennecott’s high grade Tamarack Nickel-Copper-PGE Project, located west of Duluth, Minnesota, USA.

Talon CEO Henri van Rooyen said that the entire US$15 million will be used by Kennecott to advance the Tamarack Project, with planning already underway for the next phase of exploration. Talon’s technical team works collaboratively with the Kennecott team in planning programs and interpreting drill results, utilizing cutting-edge geoscience to drive decision-making.

“We are now one of the few junior exploration companies that is fully funded with the ability to progress exploration on an expedited basis” said Mr. van Rooyen.

RCF’s funding includes US$1 million by way of a private placement for Talon common shares at a subscription price of C$0.12 per common share, and US$14 million via an unsecured convertible loan at a conversion price of C$0.156 per common share.

RCF Managing Director, Canada, David Thomas said that the firm was pleased to support Talon in achieving its strategic goal of obtaining an interest in the Tamarack Project.

“RCF considers all opportunities, ranging from early-stage exploration projects to producing assets and in this instance we’re assisting Talon in obtaining meaningful ownership in an exciting project in partnership with a major mining company” said Mr Thomas.

In a separate release announcing Talon’s shareholder approval for the RCF financing, Mr van Rooyen stated that its completion was a major milestone for the company.

Please visit the Talon Metals website for more information and to read the full company release.

Bannerman-Resources

Bannerman Resources Shareholders Approve Company Restructure

Bannerman Resources Limited recently announced the acquisition of full ownership of its uranium asset, Etango, in Namibia, and a debt free balance sheet.

The resolutions, which were all endorsed by shareholders at the company’s Annual General Meeting in December 2015, included a transaction with Resource Capital Funds to raise A$3 million through an equity placement and to convert A$12 million of debt into equity and a 1.5 per cent royalty over the Etango project. Following the transaction, RCF now holds 38.3% per cent ownership of Bannerman Resources.

In addition to the transaction, further resolutions passed included a share acquisition by Bannerman Resources to obtain 100% Etango ownership and performance rights issued to Chief Executive Officer Len Jubber.

Bannerman Resources Chairman, Ronnie Beevor, in his address to shareholders said that the transactions with RCF deliver a debt free balance sheet with new funds that allow Etango to be taken to the next stage.

“Importantly, Bannerman has now established a sound project platform for extensive engagement with the global nuclear industry,” said Mr Beevor.

RCF Principal, Chris Corbett, said that RCF was pleased to engage with Bannerman Resources and support the company through to its next stages of development.

“RCF partners with portfolio companies to build strong, successful and sustainable businesses that strive to produce superior returns to all stakeholders and we’re pleased to be engaged with Bannerman Resources to help to achieve the strategic goals of the company,” said Mr Corbett.

RCF employs a range of investment styles and works with management teams to structure transactions that reflect the risks and opportunities associated with each company.

To read the full results of meeting and Chairman’s address from Bannerman Resources please visit their website.

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Lighthouse Resources Plans to Supply Cleaner Coal to Asian Market

Lighthouse Resources is an owner and operator of two thermal coal mines in and around the Powder River Basin which stretches across southeast Montana and much of Wyoming. Currently the mines produce approximately 5.8 million metric tons per annum for the US domestic market (4.4 million tons per annum to Lighthouse’s account) and the Company is currently working towards expanding production and exporting coal to the international market.

The mines include the wholly-owned Decker mine in Montana and the 50/50 joint venture Black Butte mine in Wyoming with Anadarko Petroleum Corporation where Lighthouse is the operator. The Powder River Basin is known for producing some of the highest quality and lowest cost coal in the U.S. and the region currently supplies approximately 40 percent of coal consumed in the US.

Lighthouse Resources is focused on the coal export market and it is developing two port projects in the Northwestern U.S.  The Company holds a 62% interest in the Millennium Bulk Terminals-Longview port facility located near the mouth of the Columbia River at Longview Washington.  This industrial site includes an active dock and was used previously for aluminum smelting.  The site is currently being permitted for coal handling.  Lighthouse also holds a 100% interest in the development stage Morrow Pacific port located in Oregon on the Columbia River.  This port is in the permitting stage.

Lighthouse Resources was previously known as Ambre Energy North America before the company announced in April 2015 that it would change its name to reflect the company’s core business strategy to focus on resource management and infrastructure projects. Resource Capital Funds through RCF V initially financed what was then Ambre Energy North America’s purchase of the Decker and Black Butte mines in 2011.

Since its original investment in 2011, RCF has made a number of additional investments in the Company.  In late 2014, RCF purchased the North American assets of Ambre from its Australian Parent and it now holds a 92% interest in these assets with 8% being held by the shareholders of the Australian entity.  As part of the acquisition, RCF retained the North American management team which is based in Salt Lake City, Utah.  The purpose of the acquisition was to have a core management team focused on developing its port facilities and the coal mining operations.

corvus gold

Resource Capital Fund VI L.P. Acquires Approximately 5% of Explorer and Developer Corvus Gold

Corvus Gold, a junior gold explorer and developer, recently announced that RCF VI had acquired approximately 5% of the Company’s outstanding common shares via a private placement of CAD $2 million. Corvus Gold’s primary focus is advancing its wholly-owned North Bullfrog project, a new gold discovery in Nevada, USA.

RCF Senior Partner, Russ Cranswick, said that the Corvus Gold investment was part of the firm’s exploration funding strategy to enable companies with strong underlying potential to aggressively develop and test new targets.

“Our exploration funding strategy has been designed to populate the future development pipeline by investing in early stage projects with recognized potential, such as Corvus Gold,” said Mr Cranswick.

In the Company’s announcement, CEO Jeff Pontius said that, “Bringing Resource Capital Fund VI L.P. into the Corvus family of major long-term investors is a significant accomplishment as it continues to build the depth of our shareholder base.

“In addition the vote of confidence that this brings to the Company and its projects is substantial, particularly in the challenging markets that junior explorers face today.  The proceeds from this financing will give the Company added flexibility to act decisively on exploration success from its ongoing drilling program well into 2016.  Driven by the strong results from the Company’s recent North Bullfrog PEA study and new exploration discoveries in the large and untested Eastern portion of the North Bullfrog area, Corvus is rapidly building what could be a new Nevada high-grade gold District.”

To read the full announcement from Corvus Gold, please visit the Company’s website.