Half Year Accounts
Acquisition of Strandline
The Company acquired 100% of the shares in mineral sands-focused Strandline Resources Pty Ltd ("SRPL") in an all-scrip transaction. Shareholder approval for the transaction was received at a General Meeting of shareholders held on 20 October 2014 and the transaction was formally completed on 23 October 2014.
SRPL's assets included 100% working interests in 16 granted mineral sands exploration tenements, covering more than 2000 square kilometres along the under-explored coast of Tanzania.
The Company issued 166.67 million ordinary shares to SRPL shareholders. With a deemed price of 1.5 cents for each share issued, the consideration payable was $2.5 million. Subsequent to the acquisition, the Company also issued 146.67 million ordinary shares to sophisticated investors at an issue price of 1.5 cents per share raising $2.2 million (before costs).
Following the completion of the acquisition, Messrs Folwell, Hill and Murcia were appointed to the Board, replacing Messrs Craig and Dixon. The Company also appointed a number of senior personnel to the management team of Strandline. Following receipt of shareholder and regulatory approval, the Company changed its name from Gunson Resources Limited to Strandline Resources Limited.
Tanzanian Heavy Mineral Sands Projects (100%) - Tanzania
Following the acquisition of Strandline Resources Pty Ltd, the Group completed a reconnaissance, mapping and sampling programme across the Group's 2000 km2 Tanzanian mineral sands portfolio and completed a successful auger drill programme on high priority targets at its southern tenements, including the Madimba and Madimba East prospects and the recently acquired Ziwani tenement. Refer to the ASX announcements dated 17 December 2014 and 5 February 2015 for full details of the exploration results received from these programmes.
Coburn Mineral Sands Project (100%) - Western Australia
During the six month period the Group commenced a review of the Coburn Project to identify opportunities to reduce costs and add value. The Group is continuing to seek a strategic partner to take an interest in the Project and is actively targeting potential investors.
Mount Gunson Copper Exploration Project (100%) - South Australia
The Operator of the Mount Gunson Joint Venture withdrew from the Project in August 2014 and transferred its interest back to the Group. Strandline has successfully negotiated its expenditure commitments for the Project with the South Australian Department of State Development. The Group has set about compiling and interpreting all past exploration data with a view to determining its next steps to test the high priority copper-gold and coppercobalt- silver targets that have previously been generated across the Project.
Mount Gunson Copper Project - MG 14 and Windabout Excised Areas (100%) - South Australia
Torrens Mining Ltd ("Torrens") has the right to earn a 51% interest in the Mount Gunson MG 14/Windabout Project. Torrens will earn its 51% participating interest upon delivery of a Bankable Feasibility Study or the cumulative expenditure of $2.5 million, whichever occurs first.
As announced to the ASX on 12 August 2014, Torrens completed its initial Scoping Study into the commercial production of copper, cobalt and silver from the Project. The results of the preliminary test-work completed during the Study were very encouraging and Torrens commenced work on an Advanced Scoping Study which involved more detailed test-work including sodium cyanide leach tests, leach-tailings flotation and sodium cyanide regeneration tests. The results of this test-work were announced to the ASX after the end of the half-year.
Fowlers Bay Nickel Project (100%) - South Australia
The Group entered into a farm-in agreement with Western Areas Ltd ("Western Areas") under which Western Areas will become Operator of the Project and earn a participating interest of up to 90% by sole funding a $1.2 million exploration program in two stages over a period of 4 years. The key terms of the farm-in agreement include:
- Western Areas will become Project Operator.
- Western Areas will spend $800,000 on agreed exploration activities over 2 ½ years (Term 1) to earn a 75% participating interest in the Project.
- Following Term 1, Western Areas can declare a 75%/25% Joint Venture ("JV") or elect to earn a further 15% interest by spending $400,000 over the next 18 months (Term 2).
- Following Term 2, a 90% Western Areas/10% Gunson JV will be formed.
- Strandline will be "free-carried" until a JV is declared, following which it can pay its share of JV costs, dilute its interest, or convert its interest into a 1% gross royalty.
Western Areas commenced a detailed magnetic survey over the Project during the period. The results of the survey were announced to the ASX after the end of the half-year.
Tennant Creek Gold-Copper Project (100%) - Northern Territory
The Group has deferred exploration activities on the Project.
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About Strandline Resources Limited
Strandline Resources is an Australian Stock Exchange listed company (ASX:STA) (OTCMKTS:STQNF) is a Tanzanian-focused mineral sands developer positioned within the world’s major zircon and titanium producing corridor in South East Africa. Strandline has a dominant mineral sands position with a series of 100% owned projects spread along 350km of the Tanzanian coastline.
Strandline’s strategy is to develop and operate quality, low cost, expandable mining assets with market differentiation. Leveraging off the exploration success of 2016, the Company’s focus is to continue its aggressive exploration and development strategy to progress economically attractive projects based on high unit value titanium and zircon products.
Strandline Resources Limited