Strandline raises $5.5m

Strandline Resources has raised $5.5 million via a share placement, with the proceeds set to advance its Coburn mineral sands project.

Under the oversubscribed placement, shares were issued at 12 cents each, representing a 5 per cent to the 30-day volume-weighted average price of the company’s shares.

Strandline’s major shareholder, Tembo Capital, a specialist mining investment private equity fund,  participated in the raising.

Morgans Financial acted as lead manager to the placement.

In a statement, Strandline said proceeds from the placement will be used to advance the Coburn mineral sands project, located just south of Shark Bay, through the engagement of strategic implementation partners relating to product offtake, major contract packages and funding options.

The proceeds will also help fund ongoing exploration and development at the company’s pipeline of projects in Tanzania.

Strandline managing director Luke Graham said the funds raised provide the Company with a strong foundation to deliver some potentially transformational development milestones over the next 12 months.

“With key development approvals in place, definitive feasibility studies competed and financing activities underway at both Fungoni and Coburn, Strandline is extremely well-placed to capitalise on the growing mineral sands market through commercialisation of its first generation development projects,” he said.

Shares in Strandline were down 7.15 per cent at 13 cents each at 3.10pm AEST.