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DIGGeRs & DeALeRs

Strandline

with two at

the gate

Strandline is waiting for the Tanzanian
trandline Resources Ltd is in rare ter- standards, global growth and the num- Government to decide on its 16% free-
Sritory for a junior; it has two construc- ber of applications zircon is used in has carried interest in the Fungoni mineral
tion-ready projects with a combined DFS seen Industrie Bitossi (34,000 tpa pre- sands project, 25km from Dar es
NPV exceeding $610 million and annual mium zircon), Sanxiang-Nanjing (54,000 Salaam port
EBITDA of plus-$110 million. tpa zircon concentrate) and Chemours
Financing remains the final hurdle for (110,000 tpa ilmenite) come in as offtake test bulk work and in the market with our
both projects and that means dealing counterparties, with negotiations for the contractors and suppliers in getting the
with the vagaries of the mineral sands rutile in progress. project ready for FEED,” Strandline man-
sector and a cautious government in Therefore, Strandline has 66% of rev- aging director Luke Graham told Paydirt.
one particular jurisdiction still need to be enue secured in offtake for the first 5-7 “It was just overdue that we updated
overcome before it can start digging dirt years of the 222,000 tpa Coburn mineral the market because there have been
at Coburn (Western Australia) and Fun- sands project in WA’s Mid West. some enhancements that our team and
goni (Tanzania). Financing discussions for the $260 partners have been able to do. The bind-
Last month, the company updated the million development capital, excluding ing offtake agreements [in April] exceed-
Coburn DFS, which is considered in the financing costs, is well advanced given ed our expectations on the key terms of
Tier 1 bracket in terms of the potential the original DFS was released about 12 those contracts and that created extra
production volumes of premium zircon months ago. value we probably conservatively didn’t
(34,000 tpa), ilmenite (110,000 tpa) rutile “In the meantime we have been engag- take up in the original DFS.
(HiTi 24,000 tpa). ing with the end consumers in terms of “There were also some enhancements
Increasing urbanisation, rising living offtake, also doing some confirmatory commercially and technically present-

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Page 46 JULY 2020 aUSTRaLIa’S PaYDIRT