Strandline to raise $5.2m

Mineral sands explorer Strandline Resources has completed a share placement to raise $5.2 million for ongoing work at its Fungouni project in Tanzania.

Under the placement the company will issue a total of 651.2 million shares at a price of 0.8 cents per share.

A considerable portion of the shares will be issued to Tembo Capital, which will allow the private equity advisers to maintain its 32.4 per cent interest in Strandline.

Proceeds from the placement will be invested in the company’s Tanzania-based Fungoni project, ongoing exploration and development costs in other project areas, and general working capital.

“We are very pleased to have secured funding to progress the ongoing development of the company’s projects,” managing director Luke Graham said.

“The share placement puts the company in a strong financial position to continue the feasibility study for the Fungoni project, which is due for completion in Q3 2017.”

“We welcome C+H International Investment Limited to our share register, a mining and minerals investor and we also thank Tembo Capital, a private equity fund that specialises in mining focussed investment into developing countries for their ongoing support.”

Strandline Resources share price closed 16.7 per cent up at 0.7 cents per share today.