Melior Resources says it plans to restart operations at its Goondicum ilmenite mine near Monto and has an agreement in principle with Pala Investments for provision of a US$5.25 million loan facility.

With this commitment from Pala in place, Melior said it would look to secure the remaining US$5 million required to commence the restart of the Goondicum ilmenite mine as quickly as possible.

The company said its decision to restart operations at Goondicum was based on a number of factors, including strong project economics, recovery of ilmenite prices and a positive outlook for the sector given expected GDP economic growth in China and the likely constraints in additional supply for the foreseeable future.