Strandline Resources has boosted its funding for the Coburn mineral sands project in Western Australia after penning three binding product offtake agreements.
The company has secured approximately 66 per cent of the project’s forecast revenue through the new contracts.
Strandline’s three binding offtake agreements include a zircon concentrate sales contract with Sanxiang Advancement Materials and Nanjin Rzisources International Trading operating in a strategic partnership, a zircon concentrate contract with Industry Bitossi and an ilmenite sales contract with The Chemours Company.
The three long-term agreements will see Strandline’s commodities exported to China, Europe and America respectively, covering 100 per cent of Coburn’s ilmenite and 100 per cent of zircon concentrate.
A significant portion of Coburn’s premium zircon product will also be produced at the site for the first five years. A combined value of $US400 million ($615 million) is estimated for the value of the three contracts.
Strandline managing director Luke Graham described the sales contracts as “huge endorsements” for the Coburn project.
“These contracts, with three leading global consumers, are huge endorsements of Coburn and underpin our plan to secure project funding,” he said.
“With two-thirds of the project’s revenue now underwritten by offtake agreements and the remaining agreements well advanced, Strandline is advancing strongly towards development of this world-class project.”
A total of $1.9 billion of earnings is forecast for the Coburn site in the first 22.5 years of its potential 38-year mine life, according to its definitive feasibility study (DFS).
Coburn is continuing to advance negotiations for its remaining revenue streams, which includes 24,000 tonnes of rutile per annum, along with the remaining premium finish zircon.