Strandline awards circa $21m fixed-price contract to supply in-pit dozer mining units for its Coburn mineral sands project in WA
Strandline Resources (ASX: STA) is pleased to announce that it has taken another important step towards development of its Coburn mineral sands project in Western Australia by appointing Piacentini & Son (Piacentini) to design and construct three mobile dozer mining units for the project.
The scope forms a key part of Coburn’s efficient dry mining methodology, capable of receiving and delivering ore to the processing facilities at an average rate of 3,100 tph, based on two units in operation at any one time.
The contract follows Strandline’s recent A$18.5 million equity raising to advance early works development activities while finalising the balance of project funding. Strandline is making solid progress towards definitive finance documentation and conditions precedent for the NAIF A$150m loan facility1 and is advancing discussions on the commercial debt tranche which is expected to stand alongside.
Coburn has a world-scale Ore Reserve in a Tier-1 location and will produce premium quality zircon and titanium mineral sands products. The in-pit dozer mining units are designed to be frequently relocated as the mine progresses through the mine plan.
Piacentini, based in Bunbury WA, is established as a leader in the global mineral sands industry for mining, earthmoving and supply of mechanical plant solutions.
The parties have agreed final contract documentation (the Agreement) based on a fixed price, fixed schedule arrangement, which is in line with the assumptions contained within the Coburn Definitive Feasibility Study.
The Agreement is subject to standard conditions precedent regarding the development of the Project and Strandline releasing a formal notice to proceed to commence the works under contract.
Strandline Managing Director Luke Graham said the contract marked another key step in its strategy to bring Coburn into production and establishes an important relationship with a leading services provider in Piacentini.
Source: Company Press Release