- Strandline Resources (STA) has received $150 million in debt funding from the Northern Australia Infrastructure Facility (NAIF) for the Coburn Project
- Coburn is located 240 kilometres north of Geraldton in WA
- It has large ore reserves of 523 million tonnes at 1.11 per cent total heavy minerals
- NAIF approved the hefty loan facility as the Coburn Project is expected to stimulate the economy and provide jobs to regional and Indigenous communities
- The loan will be provided in two tranches with the first to cover construction of infrastructure and the second for a potential northern access road
- Strandline’s shares are up a healthy 14 per cent and trading for 24.5 cents each
Strandline Resources (STA) has received $150 million in debt funding from the Northern Australia Infrastructure Facility (NAIF).
NAIF approved the hefty loan facility to provide support to the Coburn Mineral Sands Project. Its investment decision follows a detailed due diligence process and is a recognition of the benefits the Coburn Project is expected to bring.
“NAIF’s investment decision is a major endorsement of the project and positions the company well to advance towards production,” Managing Director Luke Graham said.
The loan will be provided in two tranches. The first tranche will include up to $130 million towards the construction of Coburn’s core mine process and non-process infrastructure.
The second tranche will include the remaining $20 million for a potential future northern access road. This road will link the project more directly to the Denham community in Shark Bay. However, this is subject to a feasibility assessment, permitting and approvals.
The Coburn Project is located 240 kilometres north of Geraldton, Western Australia, and covers an area of 1200 square kilometres.
The mine life extends until 2045 with the potential to expand to 2060 through converting JORC-compliant resources immediately north and along strike of its existing reserves.
The project has large ore reserves, 523 million tonnes at 1.11 per cent total heavy mineral (THM).
Coburn is expected to create significant employment and enterprise opportunities for regional and Indigenous communities.
The NAIF loan accounts for a large portion of the total estimated capital cost of $260 million and is expected to stand alongside a commercial lending tranche.
NAIF CEO Chris Wade recognises the importance of this project in stimulating the economy and resources sector.
“This loan means NAIF has now approved nearly $2.3 billion in loans to projects right across the north, with $1.2 billion approved in the last 12 months,” Chris said.
The parties are now working to satisfy all conditions under the loan and finalise all relevant documents.
Strandline’s shares are up a healthy 14 per cent and trading for 24.5 cents each at 2:57 pm AEST.