22/06/2020 - 14:15

Strandline gets $150m NAIF funding

22/06/2020 - 14:15

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Strandline Resources has secured a major portion of capital costs for its Coburn mineral sands project, with the Northern Australia Infrastructure Facility (NAIF) to provide up to $150 million in funding.

Strandline gets $150m NAIF funding
The Coburn project is situated 240km north of the established mineral sands export port at Geraldton.

Strandline Resources has secured a major portion of capital costs for its Coburn mineral sands project, with the Northern Australia Infrastructure Facility (NAIF) to provide up to $150 million in funding.

The announcement follows a detailed due-diligence on the project, located in Western Australia’s Gascoyne region, which NAIF began last October.

The funding will be provided in two tranches over 15.5 years, accounting for around 73 per cent of Coburn’s $260 million estimated capital costs.

Under the first tranche, up to $130 million will go towards construction of the core mine infrastructure, while the second tranche – up to $20 million – will fund a potential northern access road, which will link the Coburn project more directly to the Denham community in Shark Bay.

Strandline managing director Luke Graham said the NAIF investment was pivotal in Coburn’s development.

“As well as providing a substantial share of the project funding, NAIF’s support will help ensure Coburn secures the rest of the necessary financing,” he said.

“Coburn will be a significant contributor to the economy of the Gascoyne and Mid West regions in WA and a large employer from the surrounding communities for many years to come.

“With the key development approvals in place, binding offtake contracts signed with major customers and a significant portion of the development funding secured via the NAIF loan, Coburn is moving rapidly towards development.”

In April, Strandline signed $US400 million ($A582 million) in offtake agreements, accounting for 66 per cent of Coburn’s revenue during the first five to seven years of production.

An updated definitive feasibility study, released earlier this month, has confirmed a pre-tax net present value of $705 million and an internal rate of return of 37 per cent.

Coburn is expected to produce 34,000 tonnes of premium zircon annually, along with 54,000t of zircon concentrate, 110,000t of chloride ilmenite and 24,000t of rutile.

The project is situated 240 kilometres north of the established mineral sands export port at Geraldton.

Strandline shares were up 13.9 per cent at 3:40pm AEST to trade at 24 cents.

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