Strandline Resources has received firm commitments for $3.0 million via a share placement to investors.
This underpins Strandline's strategy to progress its two most advanced mineral sands projects towards development and production.
The proceeds will be used to finalise funding for the Fungoni project in Tanzania and complete the Definitive Feasibility Study (DFS) on the Coburn project in WA.
The raising was priced at 11 cents per share, representing a 5 percent premium to the closing price of 10.5 cents a share on 01 November 2018.
Approximately 27.3 million new shares will be issued under the placement, resulting in an expanded share capital of approximately 320.7 million ordinary shares.
The shares will be issued on or about 13 November 2018. Strandline’s major shareholder Tembo Capital, participated in the raising subscribing for 13.7 million shares.
The issue will be made pursuant to Strandline’s capacity available under listing rule 7.1 only with no shares being issued under listing rule 7.1A.
Proceeds from the placement will be used to advance the Coburn mineral sands project DFS, while also engaging with strategic implementation partners relating to product off-take, major contract packages and funding options.
This is in addition to ongoing exploration and development costs relating to the company’s other projects in Tanzania, including but not limited to, progress Fungoni project financing process, resource drilling of existing deposits and regional exploration drilling of potential new deposits.
Strandline MD Luke Graham comments that the company is well-placed to capitalise on the growing mineral sands market with a pipeline of projects at different stages of development and with varying scale.
“At Fungoni, key development approvals are already in place and project financing is underway," explains Graham.
“The updated DFS showed that Fungoni will generate strong financial returns on the back of low capital and operating costs.
“At the same time, we are on track to release the revised-DFS on Coburn in the coming quarter and we are already assessing partnering and funding options for the project," he continues.
Strandline is also continuing to establish a world-scale inventory at the Tanga South project in Northern Tanzania, where the JORC Resource stands at 147 Mt at 3.1 percent Total Heavy Mineral, and exploration is ongoing as part of its joint venture with Rio Tinto in Southern Tanzania.