PERTH (miningweekly.com) – Mineral sands miner Strandline Resources will raise A$18.5-million in a share placement to accelerate the development of its Coburn project, in Western Australia.
Strandline told shareholders that it had received firm commitments for a share placement of more than 85.8-million shares, at a price of 21.5c each, with the shares to be placed under the company’s existing placement capacity.
The placement was well supported by both existing and new institutional and sophisticated investors, the ASX-listed miner said.
“The strong demand, led by institutional investors, reflects the quality of Strandline’s mineral sands projects and enables us to continue to unlock the value of Coburn,” said MD Luke Graham.
“This raising means we now have A$23-million in cash which will enable us to undertake detailed design work, procure long-lead items, ensuring we remain on track to capitalise on the emerging demand for mineral sands.”
Strandline earlier this week awarded a A$23-million contract to civil and mining contractor Macmahon for the construction of road access and bulk earthworks at the Coburn project.
The scope of the work will include the construction of a 43-km bitumen sealed access road connecting the mine with the North West coastal highway, the installation of other site roads, bulk earthworks pads, dams and drainage associated with the mine and process infrastructure.
Located 240 km north of Geraldton, the 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.
Funds raised from the placement will also go towards general working capital across Standline’s portfolio of projects, including its Fungoni and Tajiri mineral sands projects in Tanzania.