Strandline secures $US60m in debt funding for Coburn

Strandline Resources says it is on the cusp of a final investment decision for its flagship Coburn mineral sands project near Shark Bay after securing $US60 million ($80m) in project debt (reports The West Australian).
19th March 2021
Resources Rising Stars

Strandline Resources says it is on the cusp of a final investment decision for its flagship Coburn mineral sands project near Shark Bay after securing $US60 million ($80m) in project debt (reports The West Australian).

The debt funding through European investment bank will stand alongside a $150m loan from the Federal Government’s Northern Australia Infrastructure Facility.

It leaves only a roughly $30m equity raising component to complete the $260m funding puzzle for the project.

Coburn said it was moving rapidly into development of the project with key development approvals and offtake agreements in place as well as preferred major contractors appointed.

Strandline managing director Luke Graham said the successful debt raising was another strong endorsement of Coburn’s outstanding financial returns and technical merit.

“In parallel with the funding process, Strandline continues to advance front-end engineering design, award of construction contracts, long lead procurement and site early works,” he said.

Strandline estimates Coburn will deliver $4.4b in revenue over its initial 22.5-year mine life, with average annual earnings before interest tax depreciation and amortisation of $104m.

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