PERTH (miningweekly.com) – Mineral sands developer Strandline Resources has successfully completed the share placement and institutional component of its entitlement offer.
The company on Wednesday said that the institutional component of its 1-for-1.3 fully underwritten pro-rata accelerated non-renounceable entitlement offer, along with placement, would raise some A$89-million.
This part of the raising included the commitment from existing shareholder Tembo Capital to subscribe for 70-million shares in the retail entitlement offer, an investment worth A$14.4-million.
The share placement and institutional component of the entitlement offer was part of a larger A$122-million capital raise to fund the construction of the Coburn mineral sands project, in Western Australia.
Strandline MD Luke Graham said the company was pleased by the strong support received for the equity raise from both domestic and international institutions.
“The company is set to make a final investment decision once all proceeds from the equity raise are received next month, and plans to commence full-scale construction immediately after that, putting Coburn on track for production in the second half of 2022.”
The retail component of the entitlement offer is expected to open on April 7 and will close on April 20, with Strandline expected to raise a further A$47.3-million.