Strandline in $14m Rio Tinto farm-in deal

Strandline Resources has attracted Rio Tinto for a $14.5 million farm-in agreement at its heavy mineral sands tenement portfolio in Tanzania.

Perth-based Strandline said Rio had the option to earn up to a 75 per cent stake in the tenements by spending up to $14.5 million on exploration over two stages.

Under the agreement, Strandline will remain manager of the tenements until Rio has passed 51 per cent ownership.

The joint venture applies to a portion of Strandline’s tenement portfolio, which covers 350 kilometres of Tanzanian coastline.

“This transaction delivers a strong source of funding and regional mineral sands expertise to significantly enhance the development potential of the company’s southern ground in Tanzania, with a view to ultimately developing one or more economic mineral sands mines,” Strandline managing director Luke Graham said.

“Execution of this JV follows keen interest from several global mining houses and investors, reinforcing the prospectivity and investment potential of Strandline’s Tanzanian mineral sands assets.

“Rio Tinto has undertaken technical reviews and site inspection of the project area and this agreement contemplates mobilisation of exploration activity led by Strandline as soon as practicable to take advantage of the current field season.”

Strandline shares were 16.6 per cent higher to 0.7 cents each at 1pm.