Strandline selling Tanzanian mineral sands projects to cut debt 

Strandline Resources (ASX:STA) has agreed to sell its mineral sands projects – Tajiri, Bagamoyo, Fungoni and Sudi – in Tanzania to rare earths and mineral sands developer Shenghe Resources (SHA:600392).

The company will receive $43 million from Shenghe, split between $27.2 million from the sale of its shares in the Tanzanian projects and $15.8 million for the assignment of the inter-company loans Strandline has provided to fund its projects. 

Strandline says the completion of the sale is subject to numerous conditions precedent including obtaining all necessary regulatory and government approvals, including Tanzania and Chinese government approvals. 

The company will use the cash from the sale to repay super senior debt. 

Strandline notes it is in active discussions with its financiers to ensure maximum liquidity is retained within the company. 

Managing Director Jozsef Patarica says the company believes this is a win for Shenghe and Tanzania, given Shenghe’s intention to fast-track the development of the projects. 

“It will also provide important liquidity to Strandline as it continues to ramp up its flagship Coburn project in Western Australia,” he says. 

“We would also like to thank the Government of Tanzania which continues to provide extensive support for Strandline and Shenghe as all parties work toward completion of the sale and the accelerated development of the Tanzanian projects.”

Shenghe’s subsidiary Ganzhou Chenguang Rare Earths New Material is the purchaser of the assets. 

Strandline Resources is an emerging producer of critical minerals with a portfolio of wholly owned development assets in Western Australia. 

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Images: Strandline Resources
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.