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Strandline Resources has raised $6.5 million via a $2 million Share Placement and $4.5 million fully underwritten pro rata non-renounceable Rights Issue.

The Rights Issue, which comprised one new share (Rights Issue) for every 10 shares held at the record date at a price of 12c per Rights Issue Share, closed on Wednesday, 18 March 2020.

Under the terms of the Rights Issue, a total of 37,281,650 new shares were offered, of which 12,610,618 shares were accepted by Eligible Shareholders pursuant to the Rights Issue and a further 134,713 additional shares were applied for by Eligible Shareholders as shortfall shares.

The balance of the shortfall shares (24,536,319 shares) will now be placed to Ndovu Capital VII B.V, which is part of Tembo Capital, in accordance with its agreement to fully sub-underwrite the Rights Issue.

Following the allotment and issue of the Rights Issue Shares, Tembo will hold a 37.6% interest in the Company.

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Tembo is a specialist mining private equity fund and has been a strong supporter of the Company’s mineral sands exploration and development strategy since 2016.

The proceeds will be used primarily to accelerate preparation for development of Strandline’s flagship Coburn mineral sands project in Western Australia.

This includes advancing project financing and pre-execution activities, such as procurement of major construction and operations contracts, offtake agreements, debt financing and partner arrangements.

As announced on 18 Feb 2020, detailed technical and financial due diligence of Coburn has commenced with SRK Consulting appointed as Independent Technical Expert on behalf of lenders.

Funds will also be used to progress Strandline’s 100%-owned mineral sands projects in Tanzania, including the Fungoni and Tajiri projects.

In addition to existing cash reserves, Strandline is now well funded to achieve major milestones across its portfolio of mineral sands assets.