Mineral sand developer Strandline Resources (ASX: STA) Completed debt financing for the Coburn Mineral Sands Project in Western Australia, with seniors issuing US $ 60 million (US $ 77.6 million) bonds.
240 km north of Geraldton, Coburn has the first 22.5 years of ore reserves, including zircon, ilmenite and rutile, and can supply 5% of global zircon demand.
The bond is equivalent to a loan facility approved by the Northern Australia Infrastructure Facility, where Strandline can withdraw up to $ 150 million.
Coburn’s cost of capital is estimated at $ 260 million.
According to the company, the five-year bond was “greatly endorsed” by global institutional investors, adding Strandline, reflecting “Coburn’s strong financial outlook.”
All major approvals of Coburn
The project has all major development approvals and off-take contracts.
These include access to the port in Geraldton while the construction of the power plant and the contract for gas supply to the power plant are in place.
The Coburn power plant near the mineral separation plant is powered by liquefied natural gas supplemented by solar energy.
Managing Director Luke Graham said bond completion is another important milestone.
“This highly successful debt raising is another strong support for Coburn’s outstanding economic and technical benefits,” he added.
“In parallel with the funding process, Strandline continues to work on front-end engineering design, construction project awards, long-lead procurement, and site initial work.”
Premium zircon and titanium weighted production
In a recent presentation, Coburn is considered ready for construction by a definitive feasibility study (DFS) that identifies a strong economy and its future as a large, long-lived strategic asset.
Strandline’s product mix is weighted on ceramic tiles (50% of the market), refractory applications, paints, titanium metals, premium zircon and high quality titanium raw materials used in welded rock applications.
Currently, China dominates the 1.1 billion ton zircon market annually, with a 47% share. Iluka Resources (ASX: ILU) The most influential company in setting benchmark prices.
The Coburn project was acquired by the company in about 20 years and listed as Gunson Resources.
Strandline also has two mineral sands projects in Tanzania.
The most advanced is Fungoni, 25 km from the capital Dar es Salaam, and another project, Tajiri, targets mineral sands along the 30 km coastline.
Strandline Resources Secures US $ 60 Million Bond Issuance for Coburn Mineral Sands Project
Source link Strandline Resources Secures US $ 60 Million Bond Issuance for Coburn Mineral Sands Project