Strandline Resources Shares Finance Facility Update For Fungoni Project

  • Jan 03, 2019 AEDT
  • Team Kalkine
Strandline Resources Shares Finance Facility Update For Fungoni Project

Strandline Resources Limited (ASX: STA) is a mineral exploration company based out in Perth, Australia. The company focusses on the exploration, evaluation and project development of mineral sands through its assets located in Western Australia and South East Africa (mainly Tanzania). Currently, the company is working on the Fungoni Project based out in Tanzania (a zircon-rich project) and the large Coburn Project located in Western Australia (a zircon-rich project), and a series of titanium dominated exploration targets over the Tanzanian coastline.

Today, STA has selected Nedbank Limited (Nedbank CIB) as a Lead Arranger for a finance facility that the company has come up with. The finance facility is for US$26 million for its zircon-rich Fungoni Project based out in Tanzania. Fungoni is expected to generate strong financial returns (including EBITDA of US$115 million), with a low capital requirement, low operating cost, and high-value product suite.

Nedbank Limited is a leading financial service provider in Africa catering to individuals, small businesses, and government and public sectors. Nedbank CIB is an investment bank division of Nedbank Limited having experience in financing the mining projects in the African continent.

The total estimated development capital cost, as published by the company in 1st November 2018 report, is of US$32 million excluding taxes, levies, and financing costs. Nedbank CIB will be acting as the lead arranger and underwriter for the 100% of Fungoni debt requirement, and it has already started with the detailed due-diligence process. The documentation and the completion of technical, financial legal, and social due diligence are targeted to be completed by the end of March 2019.

The company has mining and environment license over the area and along with strong support of the Tanzanian Government, it is ready to start its first project in Tanzania further capitalizing on the growing mineral sands market.

Azure Capital, STA’s financial advisor, had assisted in preparing the Lead Arranger mandate. The tenor for the facility is five years, and the repayment schedule is set to be a quarterly repayment starting from the date 21 months after the Financial Close. In addition to this, it might attract an additional sweep of available cash flow under certain circumstances. The onshore account bank is Ecobank (Tanzanian) Limited, Nedbank’s Tanzanian alliance partner.

In November 2018, the company announced the updates over its another zircon-rich project, Coburn Mineral Sand Project in Western Australia, with an increase in the resource estimate by 65% to 1.6 Bt at 1.2% Total Heavy Minerals (THM). The contained Heavy Mineral (HM) also increased from 12.3 Mt to 19.6 MT.

Further, the company also raised $3 million by issuing 27.3 million fully paid ordinary shares at a price of $0.11 to advance the Coburn mineral sands project Definitive Feasibility Study (DFS) and finalize funding for the Fungoni project.

During the year 2018, the stock price has plunged by 34.81%. But today, the scrip price has soared by 10.227% over the previous close and is currently trading at 9.7 cents per share.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK