17/03/2021 - 15:00

Strandline secures debt funding for Coburn

17/03/2021 - 15:00

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Strandline Resources has the debt funding it requires for its Coburn mineral sands project after securing about $80 million from a senior secured bond issue.

Strandline secures debt funding for Coburn
The Coburn mineral sands project is located about 240 kilometres from Geraldton port. Photo: Attila Csaszar

Strandline Resources has the debt funding it requires for its Coburn mineral sands project after securing about $80 million from a senior secured bond issue.

The bond issue, together with the 15-year $150 million Northern Australia Infrastructure Facility loan Strandline received in December 2020, completes the debt funding needed for the Gascoyne-based project.   

The company said both the NAIF loan and bond would account for a significant portion of Coburn’s $260 million development cost.

Strandline Resources managing director Luke Graham said the completion of the bond was another pivotal milestone in the company’s strategy to become a world-scale mineral sands producer at Coburn.

“This highly successful debt raising is another strong endorsement of Coburn’s outstanding financial returns and technical merit,” Mr Graham told the ASX.

“The $US60 million bond, combined with the NAIF $A150 million loan facility, will complete Coburn’s debt requirements and account for a significant portion of Coburn’s overall development capital.

“In parallel with the funding process, Strandline continues to advance front-end engineering design, award of construction contracts, long lead procurement and site early works.”

The bond issue was arranged by ABG Sundal Collier, Pareto Securities and BurnVoir Corporate Finance.

Shares in Strandline Resources were down 9 per cent each to 25 cents when the market closed this afternoon.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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