Tuesday , April 16 2024

Financing activities for Fungoni resume

Strandline Resources has resumed project financing activities for the company’s Fungoni heavy minerals sands project priced at $30-million.

The development comes after the definitive feasibility study (DFS) for the Fungoni project estimated that 302 300 t of saleable mineral sands product could be delivered over the six-year mine life, generating life-of-mine revenues of A$168.1-million.

The DFS was based on a conventional open-pit operation, with multiple stages of advanced process beneficiation and mineral separation to be performed on site to produce three products, including a combined zircon and monazite product, rutile and ilmenite.

Strandline recently told shareholders that the DFS represented a significant milestone in the company’s strategy to become a low-cost, high-margin mineral sands producer, and defined a realistic and proven project delivery plan and rapid pathway to commercial production, confirming the ability to complete construction and commissioning within a 12-month period.

With the project feasibility activities complete, the company said would look to broaden its customer base prior to establishing a mine and progressing major construction contract negotiations.

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