Strandline Resources Limited (ASX: STA) has launched a A$30M institutional placement through the issue of approximately 166.7M new fully paid ordinary shares, at an offer price of A$0.18 per new share.
In addition to the placement, the company will also be undertaking a share purchase plan (SPP) at the same price as the placement, to raise up to A$5M. The placement and SPP will raise total gross proceeds of up to A$35M.
Strandline’s managing director, Luke Graham, said “The offer marks another key step towards delivering on the company’s goal of creating a globally significant critical minerals business,”
“The placement strengthens the company’s balance sheet and places it in a strong position to complete ramp-up at Coburn to steady-state production, including the processing of heavy mineral concentrate (HMC) into final saleable products via the mineral separation plant (MSP).”
The fixed price of A$0.18 per share represents an 18.2% discount to the last closing price of A$0.22 per share.
The company has stated it intends to use the proceeds for provisional Coburn commissioning and working capital, growth projects, and for additional working capital.
Mr. Graham continued, “Additionally, the placement ensures the company is well-capitalized to accelerate its various growth ambitions, including a scoping study evaluating the potential expansion of Coburn to +320ktpa HMC production which is targeted to be released later this year.”
To find out more, please visit www.strandline.com.au
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