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- Strandline Resources (STA) has secured US$60 million (around A$80 million) in debt funding via a senior secured bond issue for its flagship Coburn mineral sands project in WA’s Gascoyne
- The bond, together with an approved loan facility up to $150 million from the Northern Australia Infrastructure Facility (NAIF), will jointly secure Coburn’s full debt requirement
- The bond and the loan facility account for a significant portion of Coburn’s estimated capital cost of $260 million, excluding financing costs
- Global institutional credit investors support the bond, which has a five-year tenor with scheduled amortisation starting March 2024
- Coburn is moving rapidly into development with all key development approvals and product off-take agreements in place
- Major construction contractors for the project have been appointed and the company expects to settle the bond by the end of March
- Strandline shares are in the grey, last trading at 27.5 cents each
Strandline Resources (STA) has completed an oversubscribed US$60 million (around A$80 million) senior secured bond issue for the development of its flagship Coburn mineral sands project in WA’s Gascoyne.
The bond, together with an approved 15-year $150 million loan facility from the Northern Australia Infrastructure Facility (NAIF), will jointly secure all of the debt funding required for the project.
According to STA, global institutional credit investors have expressed strong support for the bond, which is based on a five-year tenor.
The bond will be senior secured and ranked equally with the NAIF loan facility.
Altogether, the financing will account for a significant portion of Coburn’s $260 million total development capital cost, excluding financial costs.
Strandline Managing Director Luke Graham said the completion of the bond is another pivotal milestone in the company’s strategy to become a world-scale sands producer at Coburn.
“This highly successful debt raising is another strong endorsement of Coburn’s outstanding financial returns and technical merit,” he said.
“The US$60 million bond, combined with the NAIF A$150 million loan facility, will complete Coburn’s debt requirements and account for a significant portion of Coburn’s overall development capital,” Luke continued.
“In parallel with the funding process, Strandline continues to advance front-end engineering design, award of construction contracts, long-lead procurement and site early works.”
With key development approvals in place and major construction contractors appointed, Strandline is moving rapidly into development at Coburn.
STA expects to financially settle the bond by the end of this month.
Strandline Resources shares are in the grey, last trading at 27.5 cents each at 12:22 pm AEDT.
