Australian critical mineral producer Strandline Resources has reached an agreement to sell its majority stake in Tanzanian mineral sands projects to a subsidiary of Shenghe Resources for A$43m ($28.8m).
The divesture includes both the shares and the assignment of inter-company loans related to the projects.
Strandline currently owns 84% of the Tanzanian mineral sands projects, with the remaining 16% owned by the Government of Tanzania.
The proceeds from this transaction will be utilised to repay Strandline’s existing super senior indebtedness and to bolster its working capital.
Under the agreed terms, Strandline will receive A$27.2m for the sale of its shares and an additional A$15.8m for the transfer of its inter-company loans to the Tanzanian projects.
See Also:
- UK’s Horizonte Minerals enters administration
- US, Canada co-invest in Fortune Minerals, Lomiko projects
This financial injection is expected to enhance the company’s liquidity position, as noted by Strandline, which is in active discussions with its financiers.
