Black rock mining Mahenge

ASX-listed Strandline Resources has received firm commitments for US$5.5 million through an oversubscribed placement, which it will use to fund ongoing exploration and development of its project pipeline in Tanzania.

The commitments are from institutional and sophisticated investors as well as Strandline Resources’ major shareholder, Tembo Capital, a specialist mining investment private equity fund.

Proceeds from the placement will be used to advance the company’s Coburn mineral sands project in Western Australia through the engagement of strategic implementation partners relating to product offtake, major contract packages and funding options.

The focus in Tanzania will include finalising project funding for the high margin and strategic Fungoni project and a JORC mineral resource update at the large-scale Tajiri project.

Strandline Resources MD Luke Graham says the funds raised provide the company with a strong foundation to deliver some potentially transformational development milestones over the next 12 months.

“With key development approvals in place, definitive feasibility studies competed and financing activities underway at both Fungoni and Coburn, Strandline Resources is extremely well-placed to capitalise on the growing mineral sands market through commercialisation of its first generation development projects.”