Strandline Resources - Quarterly Activities Report
Strandline Resources (ASX:STA) June Quarterly Report highlighted that, following the recent $6.6m placement and rights issue, the Company is well funded for the next phase of resource drillout and extensional testing. Drilling is planned for both Fungoni and Tanga South during the September quarter.
Strategic Relationship and Subscription Agreement signed with developing market and mining focused private equity fund group, Tembo Capital (“Tembo”).
Completion of Share Placement to Tembo raising $2.3 million at 0.7c per share.
Fully underwritten pro-rata renounceable 1 for 2 Rights Issue raising $4.3 million successfully completed at 0.5c per share with an attached option.
Total amount raised before costs was $6.6 million.
Tembo representative John Hodder, experienced geologist, resources company director and financier, appointed as a Non-Executive Director.
The Company is now funded and has initiated a 6 month drilling and geophysical campaign in Tanzania to expand existing high grade resources and seek additional high value discoveries.
Current Mineral Resources include:
- Tajiri – Indicated Resource of 19 million tonnes @ 5.1% Total Heavy Minerals (THM) with a valuable assemblage of 12% rutile, 6% leucoxene, 6% zircon and 65% ilmenite;
- ajiri North – Indicated Resource of 40 million tonnes @ 3.0% THM with a valuable assemblage of 7% rutile, 2% leucoxene, 5% zircon and 70% ilmenite; and
- Fungoni – Indicated Resource of 11 million tonnes @ 3.1% THM with a valuable assemblage of 22% zircon, 4% rutile and 44% ilmenite.
As at 30 June 2016, the Company had cash reserves of $1.6 million. The proceeds from the completed Rights Issue of approximately $4.3 million were received in July 2016.
Strandline’s Managing Director, Tom Eadie, commented “The completion of the capital raisings through Tembo and our existing shareholder base provides a strong platform to move forward with our Tanzanian mineral sands
“With positive sentiment returning to the mineral sands sector, we now intend to ramp up activities significantly as we target resource extensions and new discoveries.”