PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has completed the settlement of a $60-million bond issue to partly fund the development of its Coburn mineral sands project, in Western Australia.
The bond proceeds, along with a A$150-million loan facility from the Northern Australia Infrastructure Facility (NAIF) and a fully underwritten A$122-million equity raising, meant that the company was fully financed for the development of the Coburn project.
First draw-down of the bond proceeds will coincide with the NAIF draw-down regime on a pro-rata basis, and would be subject to customary conditions precedent, the company said on Tuesday.
Located 240 km north of Geraldton, the A$260-million Coburn project has ore reserves of 523-million tonnes and an initial mine life of 22.5 years at a planned average mining rate of 23.4-million tonnes a year.
Strandline noted on Tuesday that with key development approvals in place, some 90% of product pre-sold to highly reputable customers via long-term offtake contracts, major construction contractors already appointed, and the development funding secured, the company was moving rapidly into construction of the Coburn project.