- Strandline Resources (STA) has entered two consecutive trading halts ahead of a capital raise announcement
- Yesterday, the heavy mineral sands developer awarded fellow ASX-listed Macmahon (MAH) a $23 million contract for site works at its Coburn Mineral Sands Project
- Developing the Coburn Project is highly significant to Strandline, as well as the Northern Australia Infrastructure Facility, who provided the company with a $150 million debt facility
- Additionally, Strandline secured a US$26 million (roughly A$36.5 million) finance facility with Nedbank for its Fungoni Project in Tanzania
- While the capital raise may potentially support the development of these projects, it remains unclear
- Company shares last traded for 24.5 cents each on Monday, August 3
Strandline Resources (STA) has entered two consecutive trading halts ahead of a capital raise announcement.
The company will remain in a trading halt until the earlier of commencement of trading on Monday, August 10, unless the capital raise is announced earlier.
Yesterday, the heavy mineral sands developer awarded fellow ASX-lister, Macmahon (MAH) a $23 million contract to construct road access and bulk earthworks at its Coburn Mineral Sands Project in Western Australia.
The 43-kilometre access road will connect the mine with the North West Coastal Highway.
“This commercial milestone is the first of a series of material project contracts to be awarded as part of project financing in preparation for construction and Financial Close,” Strandline Managing Director Luke Graham said.
The contract follows Strandline’s receipt of a $150 million debt facility for the Coburn Project from the Northern Australia Infrastructure Facility (NAIF).
The NAIF loan accounts for a large portion of the estimated $260 million in capital costs and is expected to stand alongside a commercial lending tranche.
Coburn’s mine life extends until 2045, with the potential to expand to 2060 through converting JORC-compliant resources north and along strike of its existing reserves.
The project is expected to create significant employment opportunities for regional and Indigenous communities.
While the majority of the June quarter was spent focusing on the Coburn Project, Strandline managed to secure a US$26 million (roughly A$36.5 million) finance facility with Nedbank for its Fungoni Project in Tanzania.
Excluding financing costs, Fungoni has an estimated capital cost of US$35 million (roughly A$49.1 million).
It’s unclear whether or not the upcoming capital raise will be put towards either project.
Company shares last traded for 24.5 cents each on Monday, August 3.