- Strandline Resources (STA) has launched a $122 million equity raise to develop its Coburn Project in Western Australia
- The equity raise includes a fully underwritten institutional and retail entitlement offer and an institutional placement
- The one-for-1.3 entitlement offer will issue up to 402 million shares to raise $83 million, while the placement will issue 191 million shares to raise $39 million
- All shares will be issued at 20.5 cents — marking a 20.9 per cent discount to the five-day volume-weighted average price
- Excitingly, major shareholder Tembo Capital will subscribe for 70 million shares, worth $14.4 million, in the retail entitlement offer
- The equity raise follows US$60 million (roughly A$78.5 million) in debt funding and a $150 million loan to bring the Coburn Project into production by the second half of 2022
- Strandline remains in a trading halt, with shares last trading at 22.5 cents on Friday, March 26
Strandline Resources (STA) has launched a $122 million equity raise to fund the development of the Coburn Project in Western Australia.
The equity raise will be in the form of a fully underwritten one-for-1.3 pro rata accelerated non-renounceable entitlement offer and institutional placement.
The institutional placement involves the issue of 191 million shares to raise $39 million and the entitlement offer will issue up to 402 million shares to raise the remaining $83 million.
These shares will be issued at 20.5 cents which represents an 8.9 per cent discount to the last closing price and a 20.9 per cent discount to the five-day volume-weighted average price.
The entitlement offer will be split into an institutional and retail component with the institutional entitlement offer opening today and the retail offer will open from April 7 to April 20.
Excitingly, major shareholder Tembo Capital has committed to subscribing for 70 million shares, worth $14.4 million, in the retail entitlement offer.
In addition to this equity raise, Strandline recently secured US$60 million (roughly A$78.5 million) in debt funding. On top of that, the mineral sands project will be supported by a $150 million loan from the Northern Australia Infrastructure Facility.
These contributions will facilitate the development and construction of the Coburn Project which is expected to deliver an earnings before interest, taxes, depreciation and amortisation of more than $100 million per annum over its initial 22.5-year mine life.
“The company is set to make a final investment decision once the proceeds from the equity raise are received next month and then commence full-scale construction immediately after that, putting Coburn on track for production in the second half of 2022,” Managing Director Luke Graham said.
Strandline remains in a trading halt, with shares last trading at 22.5 cents on Friday, March 26.