Image Sourced ShutterStock
Market Herald logo


Be the first with the news that moves the market
  • Strandline Resources has pulled out all the stops for its heavy mineral sands project in Tanzania
  • The Fungoni Project, expected to net earnings of US$115 million before taxation, just received US$26 million in funding from Nedbank CIB
  • Total development of the project is estimated to cost US$35 million, meaning Strandline will still have to cover a portion of the bill

Explorers Strandline Resources has just secured US$26 million in project funding from Nedbank CIB for a heavy mineral sands project in Tanzania.

The Fungoni Project is expected to cost a total of US$35 million to develop, meaning Nedbank’s contribution is significant, but large costs still lie ahead for the company.

The news of the achievement broke today after Nedbank obtained credit approval for the five-year-long deal.

Strandline Managing Director Luke Graham says the agreement with the tier-one African mining financiers speaks of Fungoni’s worth.

“Nedbank obtained credit approval of the loan facility after studying all aspects of the project,” Luke said.

The investors reached the decision after Strandline underwent due diligence for technical, financial, legal, environmental and social aspects.

The Fungoni project has also satisfied a definite feasibility study and a pre-sale of products. Major construction approvals on site have also been completed.

The project is estimated to net earnings before taxation of US$115 million from processing premium-quality zircon and titanium products.

“Given Nedbank’s extensive experience in mining project finance and competitive terms, Strandline aims to build a strong and enduring partnership with Nedbank on a potential succession of mineral sands projects,” Luke said.

Strandline currently operates similar projects elsewhere in Tanzania and in Western Australia.

“The parties are now focusing on finalising facility documentation and conditions precedent to Financial Close and commencement of construction.”

Shares in STA are trading for 15 cents today, a 3.45 per cent premium from last week’s closing price of 14.5 cents.

STA by the numbers
More From The Market Herald

" Spheria (ASX:SEC) announces initial quarterly fully franked dividend of 2.5 cents

Spheria Emerging Companies (SEC) says it will pay shareholders an initial quarterly dividend of 2.5 cents per share for the period ended Septembe…
Pendal Group (ASX:PDL) - CEO and MD, Nick Good

" Pendal Group (ASX:PDL) ends September with increased $139b FUM

Pendal Group (PDL) is releasing its latest quarterly update, revealing it had an increased $139.2 billion worth of funds under management (FUM).
DomaCom (ASX:DCL) - CEO, Arthur Naoumidis

" DomaCom (ASX:DCL) reaches key milestone in AustAgri acquisition

Fractional investing platform provider DomaCom (DCL) soldiers in on its thorny acquisition deal of AustAgri, announcing a key condition of the transaction has
MyState Limited (ASX:MYS) -

" MyState (ASX:MYS) appoints MD and CEO

MyState Limited (MYS) has appointed Brett Morgan to the roles of managing director and chief executive officer, effective from January, 2022.