PERTH (miningweekly.com) – Mineral sands developer Strandline Resources will raise A$5.2-million from the placement of more than 651-million shares to institutional and sophisticated investors.
Strandline will issue the shares in two tranches, with the first 441.3-million to be placed under the company’s existing capacity, with the remaining 209.9-million shares subject to shareholder approval.
The shares will be placed at a price of 0.8c each, representing a 23.08% premium to Strandline’s last closing price on the ASX and a 1.29% discount to the 90-day volume weighted average price of Strandline shares.
“We are very pleased to have secured funding to progress the ongoing development of the company’s projects. The share placement puts the company in a strong financing position to continue the feasibility study of the Fungoni project, which is due for completion in the third quarter of 2017,” said Strandline MD Luke Graham.
In addition to completing the feasibility studies in Tanzania, Strandline will also use proceeds from the raising to fund ongoing exploration and development costs at its other permits, as well as for general working capital.