Strandline secures $122m for Coburn

Strandline Resources will ramp-up construction of its $260 million Coburn mineral sands project in Western Australia using funds raised from a share placement and rights issue.

Strandline told the market Coburn was now fully funded, with a planned $122 million raising to build on a $150 million NAIF loan and $US60 million senior secured bond issue.

Coburn is expected to produce zircon, zircon concentrate, chloride ilmenite and rutile throughout a 22.5-year operating life, according to a definitive feasibility study released in June last year.

Production is anticipated for the second half of calendar 2022.

Managing director Luke Graham said Strandline was on track to becoming a world-scale mineral sands producer.

He said full-scale construction would begin once the company made a final investment decision for Coburn, expected next month.

The mine will be powered by a 32-megawatt hybrid gas and renewable energy plant, to be supplied and operated by WA-based Contract Power under a 15-year agreement signed earlier this month.

Strandline will issue about 191 million shares under the placement and 402 million under the one-for-1.3 rights issue to raise $39 million and $83 million, respectively, with the offer priced at 20.5 cents each.

Strandline said its major shareholder, Tembo Capital, had committed to subscribing for $14.4 million worth of shares.

Shaw and Partners and Morgans Financial are acting as joint lead managers, bookrunners and underwriters to the offer while Euroz Hartleys and Foster Stockbroking are acting as co-managers.

Strandline requested a trading halt this morning, expected to lift on March 31.