Strandline arranges debt for Fungoni
PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has signed a $26-million project finance facility agreement with financier Nedbank CIB for its Fungoni project, in Tanzania.
The facility will account for the majority of Fungoni’s $35-million capital cost, Strandline said on Monday.
“Once concluded, this facility will account for a large portion of Fungoni’s funding requirements and discussions about sourcing the remainder of the capital are progressing,” said Strandline MD Luke Graham.
“Nedbank is a highly experienced lender to African mining projects and it has conducted extensive due diligence on Fungoni, so to sign this facility agreement with them is a strong endorsement of the project.”
Graham noted that as part of the equity raising process, Strandline is in discussions with international finance institutions about strategic equity investments at either company or project levels.
An updated definitive feasibility study (DFS) into the Fungoni project estimated a pre-tax net present value of $48.7-million and an internal rate of return of 61%, with the two-million-tonne-a-year project expected to produce 302 300 t of saleable mineral sands product over the six-year mine life.
With key mining and environmental licences in place, the DFS completed, offtake contracts secured for all of the forecast product revenue, major construction contracts executed and the debt facility now signed, Strandline is on track to develop Fungoni, which will also pave the way for the development and value appreciation of its other mineral sands projects in Tanzania, including the large-scale Tajiri project.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation