SYDNEY, AUSTRALIA: Strandline Resources Limited, a mineral sands producer and developer, has announced that it has raised $30 million through an institutional placement to support its continued ramp-up at its flagship Coburn project in Western Australia and accelerate its various growth initiatives.

The company will also offer a share purchase plan to eligible existing shareholders to raise up to $5 million at the same price as the placement.

The placement was conducted at an offer price of $0.18 per new share, representing a 10% discount to the last closing price of $0.20 on 29 September 2023. The placement was well supported by existing and new institutional investors, including several specialist resources funds. The new shares are expected to settle on 5 October 2023 and commence trading on 6 October 2023.

The share purchase plan will allow eligible shareholders to apply for up to $30,000 worth of new shares at the same price as the placement, subject to scale back. The share purchase plan will open on 8 October 2023 and close on 22 October 2023.

The proceeds from the offer will be used to fund the completion of ramp-up at Coburn, which commenced production of heavy mineral concentrate (HMC) in November 2022 and is expected to reach steady-state production in the second half of 2023. The company has exported seven shipments of HMC from Coburn since production commenced, generating $69 million of revenue. The company is also commissioning its mineral separation plant (MSP), which will process HMC into final saleable products of zircon, rutile and ilmenite.

The proceeds will also be used to accelerate the company’s growth ambitions, including a scoping study evaluating the potential expansion of Coburn to over 320,000 tonnes per annum of HMC production, which is targeted to be released later this year. The company is also pursuing the potential development of its Tanzanian mineral sands projects, which have a combined mineral resource estimate of over 4.4 billion tonnes at 3.1% total heavy minerals.

Strandline’s Managing Director, Luke Graham, said: “The offer marks another key step towards delivering on the company’s goal of creating a globally significant critical minerals business. The placement strengthens the company’s balance sheet and places it in a strong position to complete ramp-up at Coburn to steady-state production, including the processing of HMC into final saleable products via the MSP. Additionally, the placement ensures the company is well-capitalised to accelerate its various growth ambitions, including a scoping study evaluating the potential expansion of Coburn to over 320ktpa HMC production which is targeted to be released later this year.”