PERTH (miningweekly.com) – Mineral sands developer Strandline Resources will raise A$3-million through a share placement to institutional and sophisticated investors to fund its Fungoni project, in Tanzania, and complete a definitive feasibility study (DFS) for its Coburn project, in Western Australia.
The company on Tuesday told shareholders that some 27.3-million shares will be issued under the placement, priced at 11c each, with the shares to be placed under the company’s existing capacity.
Strandline’s major shareholder Tembo Capital has subscribed for 13.7-million new shares.
MD Luke Graham said on Tuesday that proceeds from the placement will be used to advance the Coburn mineral sands project towards a DFS, while also progressing the Tanzanian operations.
“At Fungoni, key development approvals are already in place and project financing is under way. The updated DFS released last week showed Fungoni will generate strong financial returns on the back of low capital and operating costs,” Graham said.
“At the same time, we are on track to release the revised DFS on Coburn in the coming quarter, and we are already assessing partnering and funding options for the project.”
Previous DFS work at Coburn has shown that the project could have a mine life of more than 19 years, based on a mining rate of 23.4-million tonnes a year, to deliver 49 500 t of zircon, 109 000 t of ilmenite and 23 500 t of high-titanium oxide, based on a Joint Ore Reserves Committee-compliant resource of 979-million tonnes, at 1.26% heavy minerals and an ore reserve of 308-million tonnes at 1.2% heavy minerals.
In addition to this work, Strandline is also continuing to establish an inventory at the Tanga South project, in Tanzania, where the resource currently stands at 147-million tonnes, at 3.1% total heavy minerals, and where exploration is ongoing as part of a joint venture with Rio Tinto in Southern Tanzania.