- Strandline Resources (STA) has raised $6.5 million through a share placement and non-renounceable rights issue
- The rights issue raised $4.5 million while the placement raised the remaining $2 million
- Money raised will be used to accelerate preparation for the development of the company’s Coburn mineral sands project in Western Australia
- The funds will also go towards progressing Strandline’s mineral sands project in Tanzania
- Strandline has ended the day with no change and shares trading for eight cents apiece
Strandline Resources (STA) has raised $6.5 million via a share placement and non-renounceable rights issue.
The rights issue, which comprised of one new share for every 10 shares, raised $4.5 million. Shares were priced at 12 cents each.
Under the rights issue, a total of 37,281,650 new shares were offered, of which 12,610,618 were accepted by eligible shareholders.
The remaining shares, 24,536,319, will now be placed to Ndovu Capital VII B.V, part of private equity investor company, Tembo Capital.
Following the allotment and issue of the rights issue shares, Tembo will hold a 37.6 per cent interest in Strandline.
The remaining $2 million of the $6.5 million was raised via a share placement.
Money raised will be primarily used to accelerate preparation for the development of Strandline’s flagship Coburn mineral sands project in Western Australia.
This includes advancing project financing and pre-execution activities, debt financing, offtake agreements, and major construction and operation contracts.
Strandline’s Coburn project is located 240 kilometres north of Geraldton and covers an area of 1200 square kilometres.
Drilling since 2000 has identified a major heavy mineral sand deposit which is over 35 kilometres long, three kilometres wide, and between 10 and 50 metres thick.
The project has large ore reserves, 523 million tonnes at 1.11 per cent total heavy mineral (THM), underpinning an initial mine life of 22.5 years at the planned average mining rate of 23.4 million tonnes per year.
The money will also be used to progress Strandline’s mineral sands project in Tanzania, including the Fungoni and Tajiri projects.
Strandline holes 2000 square kilometres of highly-prospective land along the coast of Tanzania.
The Tajiri prospect has a JORC compliant mineral resource estimate of 268 million tonnes at 3.3 per cent THM, an 80 per cent increase of the previous 147 million tonnes at 3.1 per cent THM.
This prospect is likely to continue to grow over time as the high-grade resources have remained open.
Fungoni is a highly robust prospect which is projected to generate strong financial returns for Strandline from its low capital and operating costs, and high-value product.
This prospect has a high-grade measured and indicated mineral resource of 22 million tonnes at 2.8 per cent THM.
In addition to its existing cash reserves, Strandline is now well funded to achieve major milestones across its portfolio of projects.
Strandline has ended the day with no change and shares trading for eight cents apiece in a $31.15 million market cap.