PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has selected African mining financier Nedbank CIB as the lead arranger and underwriter for a $26-million project finance facility for its Fungoni project, in Tanzania.
The facility will account for the majority of the $32-million required to develop the Fungoni project, Strandline said on Thursday.
“The mandate with Nedbank CIB puts Strandline well on track to develop its first mineral sands project,” said Strandline MD Luke Graham.
The two parties have signed a non-binding term sheet for a five-year, $26-million project finance facility, with Strandline telling shareholders on Thursday that the due diligence reviews were already under way, and the execution of the fiancé agreement was expected as soon as practicable.
An updated definitive feasibility study 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.