Strandline Resources (ASX: STA) has taken further important steps along the path towards securing debt funding for its Coburn mineral sands project in WA.
The company has instigated negotiations with a group of potential lenders, including the Federal Government’s Northern Australia Infrastructure Facility (NAIF) and as part of this process, SRK Consulting (Australasia) Pty Ltd has been appointed as Independent Technical Expert (ITE).
Strandline Managing Director Luke Graham said SRK will review the technical aspects of Coburn on behalf of the lenders, with the outcome of the ITE process is expected to feed into the selection of preferred lender(s) and will play a key role in securing debt funding.
Mr Graham said Coburn is one of the largest and most capital-efficient mineral sands projects in the world, with an exceptional zircon-titanium product suite, low costs and ability to generate strong financial returns.
It is situated in the well- established mining jurisdiction of Western Australia, close to key infrastructure and the dominant mineral sands market of Asia.
In conjunction with financing activities, Strandline is working with engineering and contracting firms on the major procurement and construction packages. The early works site surveying and detailed design of the bulk earthworks and main access road packages have already been awarded.
Strandline has entered into an exclusive period with the Woodside-EDL Joint Venture (WEJV) as the preferred power provider for Coburn, based on the development of an innovative hybrid gas and renewable energy solution.
Contract documentation and refinement of WEJV’s technical solution is well underway.
Tenders have been received for several major construction packages, including the process plant infrastructure, with early indications that prices will be in line with DFS capital estimates.
The company is also well advanced in negotiations with global counterparties for offtake agreements for all of Coburn’s products.
“Coburn is set to be a Tier-1 mineral sands project in a Tier-1 location and will transform Strandline into a company with production scale and strong cashflow,” Mr Graham said.
“The project is development-ready and has access to existing key infrastructure. When this is combined with a Board and a management team with a strong track record of developing projects of a similar scale, it is clear that Strandline is positioning for a phase of rapid growth.
We are delighted with the initial feedback from lenders, contractors and potential customers and look forward to finalising all these arrangements so that construction can commence.”