Strandline to sell Tanzanian assets

Strandline Resources has announced plans to sell its Tanzanian assets to China-based Ganzhou Chenguang Rare Earths New Material Company in a $43 million consideration package.

Ganzhou is a subsidiary of Shanghai-listed Shenghe Resources Holding Company, which has a market cap value of approximately $US2.5 billion, or $3.73 billion.

Under the transaction, Strandline will receive around $27.2 million from the sale of its shares in relation to its Tajiri, Bagamoyo, Fungoni and Sudi projects, along with a further $15.8 million towards the allocation of inter-company loans Strandline provided to fund all of the assets.

Shareholders were forewarned on April 30 that Strandline was considering all alternatives for its Tanzanian portfolio, after telling the market it had further “progressed discussions with potential strategic partners” regarding potential sale or joint venture alternatives.

Strandline holds an 84 per cent stake across all of its Tanzania-based projects, with the remaining 16 per cent owned by the Tanzanian government.

“Strandline believes this will be a real win for Shenghe and Tanzania given Shenghe’s intention to fast-track the development of the Tanzanian projects,” managing director Jozsef Patarica said.

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

In a busy April for the critical minerals junior. Last month, Strandline also appointed Robert Ierace as its chief financial officer and Robert Stevenson as general manager of operations.

During the March 2024 quarter, Strandline produced 35,180 tonnes of heavy mineral concentrate at Coburn, up from 27,709t in December 2023.

This included a record individual month in March, in which the company produced 15,510 dry tonnes, up from 11,308t a month earlier.

Strandline last traded at 9.5 cents per share.