06/04/2020 - 15:15

Strandline closer to Fungoni development

06/04/2020 - 15:15

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Strandline Resources is on track to develop its first project in Tanzania after signing a $US26 million ($A43 million) finance facility agreement with an Africa-based lender.

Strandline closer to Fungoni development
The Fungoni mineral sands project is Strandline's most advanced Tanzanian asset. Photo: Strandline Resources

Strandline Resources is on track to develop its first project in Tanzania after signing a $US26 million ($A43 million) finance facility agreement with an Africa-based lender.

The facility, signed with Nedbank CIB, will meet most of the Fungoni mineral sands project’s capital requirements.

Initial capital costs are estimated to be $US35 million ($A58 million).

The project is expected to deliver strong financial returns, Strandline says, including earnings before interest, tax, depreciation and amortisation of $US115 million ($A190.7 million).

Strandline says its Fungoni asset is the company’s most advanced project in Tanzania.

West Perth-based Strandline recently completed a full definitive feasibility study for the project and has secured binding offtake agreements for all of the forecast zircon and titanium production revenue.

Managing director Luke Graham said discussions for sourcing remaining capital requirements were progressing.

“Nedbank is a highly experienced lender to African mining projects (including mineral sands projects) and it has conducted extensive due diligence on Fungoni, so to sign this facility agreement with them is a strong endorsement of the project,” he said.

In 2018, Strandline contracted Perth-based GR Engineering to design and build the project’s processing plant under a $US17.6 million ($A29 million) contract.

Strandline today said other major non-process infrastructure contracts were also advanced and remained in line with the project execution schedule.

Its shares were up 11.7 per cent at 3:25pm AEDT to trade at 9.5 cents.  

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