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Strandline Resources (ASX:STA) enters halt amid capital raise

The Market Online Deal Room
ASX:STA      MCAP $138.9M
05 April 2022 17:02 (AEST)

Coburn project. Source: Strandline Resources

Emerging mineral sands developer Strandline Resources (STA) has entered into a trading halt ahead of a capital raise.

It is not known how much the company is aiming to raise, however, it did say the funds will be spent to speed up and expand the company’s projects in Australia and Tanzania.

Under the halt, STA shares will be paused until Thursday, April 7, or when further details about the raise are released to the market.

Standline is focused on mineral exploration project development in Australia and Tanzania.

Its projects include the Coburn Project in WA and the Fungoni project in Tanzania.

On Monday, the company began a scoping study to assess the potential to increase production by up to 50 per cent at Coburn.

A definitive feasibility study released in 2020 forecast a mine life of 22.5 years and a total average annual production rate of 222,000 tonnes of heavy mineral concentrate.

However, higher mineral sands market prices has made the company extend the project’s mine life to 37.5 years and increase production capacity by up to 50 per cent.

On the market, Strandline last traded at 48.5 cents per share.

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