PERTH (miningweekly.com) – Strong investor demand has seen mineral sands developer Strandline Resources increase its institutional placement from A$30-million to A$33.8-million.
The company earlier this week launched the institutional placement, consisting of 166.7-million shares at a price of 18c each, as part of a greater A$35-million capital raise, which also included a A$5-million share purchase plan (SPP).
Strandline on Tuesday said that the placement had received strong support, and owing to the strong demand, the company had scaled up the placement capacity to A$33.8-million to accommodate that demand.
The company will now issue 187.9-million shares under the placement, which will be issued under its existing placement capacity.
“The strong demand for the placement reflects the outlook for our world-scale Coburn mineral sands project and our suite of growth opportunities. The placement strengthens the company’s balance sheet and places it in a strong position to complete commissioning ramp-up at Coburn to steady-state production,” said Strandline MD Luke Graham.
In addition to the placement, the company will also undertake the SPP, which will open on August 7 and close on August 21.