Wednesday , June 12 2024

Strandline to sell Tanzania mineral sands asset

Australia’s Strandline Resources has agreed to sell its Tanzania mineral sands assets to a subsidiary of rare earths and mineral sands miner Shenghe Resources.

Strandline will receive a total of $43-million, comprising A$27.2-million for the sale of Strandline’s shares in the Tanzania projects and A$15.8-million for the assignment to Shenghe of Strandline’s various inter-company loans to the projects.

Strandline MD Jozsef Patarica said on Monday that the company believed the sale would be a “real win” for Shenghe and Tanzania, given the Shanghai-listed firm’s intention to fast-track the development of the projects.

The zircon-rich Fungoni project was Strandline’s most advanced Tanzania-based development, located about 25 km from the Dar es Salaam port.  The assets also include the Tajiri project, which comprises a series of higher-grade mineral sands deposits along the coastline of northern Tanzania.

Patarica added that the agreement to sell the Tanzania assets would provide important liquidity to Strandline to continue to ramp up its flagship Coburn project, in Western Australia.

Coburn produced its first heavy mineral concentrate in December 2022 quarter and made its inaugural shipment in the same quarter.

By: Mariaan Webb

 

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