New independent expert reports have reaffirmed the technical robustness of Strandline Resources’ (ASX: STA) Coburn mineral sands project in Western Australia.
Managing Director, Luke Graham, said the reports form part of the due-diligence and approvals process of potential lenders, including the Northern Australian Infrastructure Facility (NAIF), and are expected to pave the way for Strandline to complete debt and equity funding arrangements for the project.
The reports include an independent review by SRK Consulting (Australasia) Pty Ltd of engineering designs and planning associated with geology, hydrology, mining, processing, infrastructure, logistics, implementation strategies, cost estimates and environmental, social and permitting aspects of the project.
Mr Graham said that importantly, no fatal flaws or residual high risks have been identified for the development of the Coburn project.
In parallel, an independent report on product quality and marketing, undertaken by TZ Minerals International, has highlighted the high-quality specifications and saleability of Coburn’s zircon and titanium products.
This report follows the signing of three pivotal sales contracts covering 66% of Coburn’s forecast revenue for the first five years of production in April. The take-or-pay agreements deliver revenue certainty and are with some of the world’s leading consumers across Europe, America and China.
An independent economic cost-benefit analysis has also been completed as required by NAIF, confirming Coburn will provide a host of important socio-economic benefits over its forecast mine life of up to 38 years.
This report, prepared by Deloitte Access Economics, highlights that as well as providing economic benefits, Coburn aligns strongly with Commonwealth and WA Government policies and strategic objectives including, Australia’s critical minerals strategy, Australia’s infrastructure plan, the Shark Bay Shire’s economic prospectus and strategic community plan and WA’s state planning strategy 2050.
These independent reports validate Coburn’s very strong fundamentals, its development readiness and support finalising debt and equity financing for the project,” Mr Graham said.
“With the key development approvals in place and binding offtake contracts signed with major customers, Coburn is moving rapidly towards development.”