Strandline Resources (ASX:STA) - Managing Director, Luke Graham
Managing Director, Luke Graham
Source: Youtube
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Strandline Resources (STA) has secured a binding offtake agreement for its flagship Coburn Mineral Sands Project in WA
  • Europe’s Mario Pilato, a provider of raw materials to the ceramics, glass and refractory industries, has penned the deal with the company
  • The agreement covers nominally 10,000 tonnes per annum of finished, premium zircon product over an initial two-year period
  • Pilato will use this material to produce zircon flour for downstream ceramics opacifiers and in premium refractory applications
  • STA has now secured 100 per cent of the project’s forecast revenue under binding sales contracts, estimated to average around US$140 million (A$200 million) per annum
  • Coburn’s first production of heavy mineral concentrate is scheduled for the December quarter of next year
  • Strandline Resources’ shares traded at 19.5 cents at market close on May 18

Strandline Resources (STA) has secured a binding offtake agreement for its flagship Coburn Mineral Sands Project in Western Australia.

Europe’s Mario Pilato, a provider of raw materials to the ceramics, glass and refractory industries, has penned the deal with the company.

The agreement covers nominally 10,000 tonnes per annum of finished, premium zircon product for an initial two-year period.

Pilato is set to use the material to produce zircon flour or zirconium silicate for downstream ceramics opacifiers and in premium refractory applications.

Notably, STA expects future sales covered by the contract to generate roughly eight to nine per cent of the project’s total annual revenue during the first two years of production.

Strandline Resources Managing Director Luke Graham said the deal further endorses the quality of Coburn’s mineral sands products.

“Importantly, the agreement ensures that 100 per cent of Coburn’s initial production has been underwritten by binding offtake contracts with some of the world’s largest mineral sands consumers, de-risking the project, providing certainty in revenue streams and maximising returns to shareholders,” Luke said.

“The Coburn Project is set to capitalise on its robust margins, supportive market tailwinds, its tier-one location, its high-calibre contracting partners and the growing demand for critical minerals,” he added.

Following the deal, Strandline has now secured 100 per cent of Coburn’s forecast revenue under binding sales contracts, which are estimated to average around US$140 million (roughly A$200 million) per annum.

Further, the company has already pre-sold approximately 80 per cent of production to major American and European customers, with the balance sold into Asia.

The Coburn Project is fully-funded through to production, with the first production of heavy mineral concentrate scheduled for the December quarter next year.

Strandline Resources’ shares were trading at 19.5 cents at market close on May 18.

STA by the numbers
More From The Market Herald

" Rafaella Resources’ (ASX:RFR) Santa Comba shows improved recoveries

Rafaella Resources (ASX:RFR) has revealed positive metallurgical testwork results from the Spanish Santa Comba project which…

" Anax Metals (ASX:ANX) appoints Gekko Systems for Whim Creek plant

Anax Metals (ASX:ANX) has appointed Gekko Systems to assist with the design process of a polymetallic…
Challenger Exploration (ASX:CEL) - Managing Director, Kris Knauer

" Challenger Exploration (ASX:CEL) drilling extends mineralisation at Hualilan

Challenger Exploration (ASX:CEL) drilling extends mineralisation at its Hualilan gold project in Argentina and opens the…
Tempest Minerals (ASX:TEM) - Non Executive Chairman, Brian Moller

" Tempest Minerals (ASX:TEM) intersects sulphides at Euro project

Tempest Minerals (ASX:TEM) completes diamond drilling at two of its three target areas at its Euro…