Strandline Resources will launch a $3 million share placement to progress its mineral sands projects in Tanzania and Western Australia toward development and production.
Proceeds will support the ongoing exploration and development costs of the company’s various projects, including the exploration of the Sudi project as part of its $14 million joint venture with Rio Tinto in Southern Tanzania.
Other projects to benefit from the capital raising are Fungoni (financing process) and Tajiri (resource drilling of existing deposits), on top of other exploration drilling of potential deposits in Tanzania.
In Western Australia, the share placement will advance the definitive feasibility study (DFS) and multiple partnerships relating to the product offtake, major contracts and funding options of the Coburn project in Western Australia.
Strandline managing director Luke Graham said that the company was well placed to capitalise on the growing mineral sands market with projects of varying scales and stages of development.
“At Fungoni, key development approvals are already in place and project financing is underway. 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.”
Strandline will issue around 27.3 million new shares under the placement on or about November 13 this year at 11 cents per share. Almost half of these have been subscribed for by major shareholder Tembo Capital.