Strandline Resources Ltd (ASX: STA) has announced a $50m capital raise
Strandline Resources Ltd (ASX: STA) has announced that it has received firm commitments for A$50m (before costs) through a share placement to institutional, professional and sophisticated investors at $0.43/share. The funds raised will be used primarily to fund the near-term development of Strandline's Fungoni mineral sands project in Tanzania, while in parallel advancing key feasibility studies and approvals for the large-scale Tajiri mineral sands project in Tanzania and the potential future expansion at Strandline's Coburn mineral sands project in WA, which is currently under construction.
When an ASX-listed company announces a capital raising, it generally means it is selling more shares to raise money.
More often than not, the shares are sold at a discount to the company's share price at the time to entice new and existing investors.
Following the announcement, shares in Strandline Resources Ltd traded 7.22% lower at A$0.45/share.