Emerging critical minerals mining company Strandline Resources and the Government of Tanzania (GNT) have signed a binding Framework Agreement under which they will establish a joint venture entity named Nyati Mineral Sands Ltd (Nyati).
Under the agreement, Strandline will operate and own 84% of Nyati with the GNT acquiring a 16% non?dilutable free?carried interest in accordance with Tanzanian law.
Nyati’s first project set for development is the high?margin Fungoni mineral sands project near Dar es Salaam, followed by the large?scale Tajiri mineral sands project near the port of Tanga.
The two projects are forecast to generate a total of more than A$1.43 billion of EBITDA over ~30 years.
Nyati will produce critical minerals of zircon, titanium and monazite containing rare earths.
Strandline Managing Director Luke Graham said the company, in collaboration with the GNT, is in the process of progressing it’s project development strategy and expediting the administrative establishment of Nyati.
“This agreement puts us on the path to establishing a world?class mineral sands business in Tanzania, adding to our tier?one Coburn mineral sands project now under construction in Western Australia,” Mr Graham added.
