Strandline Resources (ASX: STA) is a step closer to developing its flagship Coburn heavy mineral sands project after it reported it was close to securing commercial debt alongside finalising its $150 million Northern Australia Infrastructure Facility (NAIF).
The company said the NAIF will be finalised this quarter with the facility offering up to $150 million towards developing Coburn.
This loan is via two proposed tranches, with the first to comprise up to $130 million for construction of core mine infrastructure.
The second $20 million tranche is to fund a potential northern access road that would link Coburn more directly to Shark Bay’s Denham community.
All-up, the $150 million loan would be for 15.5 years.
In parallel with NAIF, Strandline noted it was “well advanced” in securing commercial debt up to $100 million over seven years.
Strandline proposes the commercial debt tranche will be senior secured and rank equally with the NAIF.
“As part of this, the company has progressed negotiations with several shortlisted lenders, including investment banks, specialist mining funds and senior secured bond issuers,” Strandline stated.
Advancing Coburn heavy mineral sands project
As Strandline advances its development loans, it has been busy awarding requisite major contracts for Coburn.
Earlier this week, the company collared access to the Port of Geraldton from the Mid West Ports Authority.
Under the agreement, Strandline will be able to export 230,000 tonnes per annum of mineral sands product from the port over an initial 10 year term.
This latest contract follows Strandline selecting Contract Power to build, own and operate a 32 megawatt hybrid power plant for Coburn.
The plant will run on renewable energy and liquified natural gas.
Following issuing the plant contract, Strandline revealed it had appointed Woodside-EDL joint venture to supply the plant’s LNG.
Making up the Woodside-EDL JV is Woodside Petroleum’s (ASX: WPL) subsidiary Woodside Energy and EDL LNG Fuel to Power.
The JV will truck LNG to Coburn via road train from Woodside’s Pluto LNG truck loading facility near Karratha.
Strandline managing director Luke Graham said the company was looking forward to finalising the funding structure “as soon as possible” followed by a swift ramp up of construction.