A term sheet has been executed by Zyl and the investor in conjunction with an approval letter for a term bilateral loan for the funds from an Australian-based Chinese bank. Formal agreements related to this are expected to be executed soon.

In the interim the investor has agreed to provide a $2 million bridging facility, subject to Australian Foreign Investment Review Board approval, within one month.

That bridging facility is part of the $18 million facility.

The funds will be used to develop Zyl’s Mbila and Kangwane Central projects.

Zyl managing director Ian Benning said having both bankable feasibility studies completed and a majority interest in its key projects would elevate Zyl to the next level in its project development pathway.

The company has renegotiated the payment terms of its Mbila acquisition with the project’s vendors so that the two payments to secure 51% ownership totalling $13.6 million are due no later than December 31.

Part of the proceeds from the convertible note will go towards that.