Zambezi Resources closes $10 million facility to advance Kangaluwi Copper Project

Zambezi Resources (ASX: ZRL) has drawn down A$5 million of the A$10 million convertible note facility to advance the Kangaluwi Copper Project.

Funds raised by the facility will be used for exploration, project evaluation and working capital costs associated predominantly with its Kangaluwi Copper Project.

This facility provides the Company funding to undertake the following:

- additional step out and infill drilling for resource expansion and definition at Chisawa, Kangaluwi and Kalulu deposits (Kangaluwi Copper Project)
- deeper drilling of the structure for strategic control as well as to determine the down dip extent of the mineralisation;
- testing additional oxide potential above the mineralised sulphide material with a shallow drilling program;
- site capital equipment and infrastructure upgrade, e.g.: vehicles, communications, site office and site accommodation; and
- feasibility study assessment work.

The key terms of the proposed Facility were announced on the 25th July 2011.

The facility is subject to shareholders’ approval to be held within 90 days from 13 September 2011 being the date of execution of all formal legal documentation. A notice of meeting seeking approvals, including an independent expert’s report, will be sent to shareholders in due course.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20131/zambezi-resources-closes-10-million-facility-to-advance-kangaluwi-copper-project-20131.html