Strandline Resources to hit Coburn mineral sands funding target with $122m raising

Strandline Resources will raise $122 million to complete the funding puzzle for its Coburn mineral sands project near Shark Bay. The company this morning flagged a $39m placement along with an $83m, one-for-1.3 rights issue priced at 20.5¢, representing a 9 per cent discount to its last traded price of 22.5¢. The new cash will combine with a $150m loan facility from the Northern Australia Infrastructure Facility and $80m from a senior secured bond issue to complete the funding for the $260m Coburn project. Strandline’s largest shareholder Tembo Capital will subscribe for $14.4m worth of shares in the raising. Strandline managing director Luke Graham said the company was firmly on the path to becoming a world-scale minerals sands producer in a tier-1 mining jurisdiction, generating strong financial returns underpinned by binding offtake contracts with leading global customers. “The company is set to make a final investment decision once the proceeds from the equity raise are received next month and then commence full-scale construction immediately after that, putting Coburn on track for production in the second half of 2022,” he said. Coburn is expected to generate about $104m in annual earnings before interest, tax, depreciation and amortisation over an initial 22.5-year minelife.