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Chinese Company to Buy 100% of Ilmenite From Fungoni

Tanzania Fungoni Ilemnite

Australian mineral exploration and development company Strandline Resources (ASX: STA) has announced that it has secured a binding offtake agreement for 100% of the ilmenite which will be produced at its Fungoni mineral sands project in Tanzania.

The Agreement is with China’s Maoming Ubridge Group Mineral Industry Company (Maoming), part of Maoming Ubridge Group Co., with interests in mining, agriculture, trade, and business.

The zircon-rich Fungoni Project, located 25km south of Dar es Salaam port infrastructure, is the Company’s most advanced Tanzanian based development.

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The binding sales contract signed with Maoming covers 100% of the ilmenite to be produced at Fungoni for the Life of Mine, which is expected to generate 28% of forecast revenue from Fungoni.

Strandline Managing Director Luke Graham commented: “The Agreement provides a strong endorsement of the Fungoni project and the high quality of the chloride ilmenite which will be produced over the life of the mine. With the environment certificate already received for the project, Strandline is now awaiting approval of its Mining Licence from the Tanzanian Mining Commission, at which time project funding can be finalized.”

With the previously announced zircon-monazite sales agreement with Hainan Wensheng High-Tech Materials of China, Strandline Resources now has 90% of Fungoni’s forecast revenue secured via
binding offtake contracts with Chinese companies.

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