Strandline Resources (ASX:STA) and Coburn Resources - Voluntary Administration

Strandline Resources (ASX:STA), a Western Australia-based mineral sands miner, and Coburn Resources, its operating subsidiary, entered voluntary administration on 21 February.

Thomas Birch and Jeremy Nipps of Cor Cordis were appointed administrators, while Rob Brauer, Linda Smith and Jason Preston of McGrathNicol were appointed receivers and managers.

The company’s main project is the Coburn Mineral Sands Project in Western Australia, which was largely funded by the Northern Australia Infrastructure Facility (NAIF), the Australian Government's flagship financing agency for infrastructure in northern Australia.

According to the company’s website, NAIF loaned $150 million to the project. The company’s shares have been suspended while it has worked to improve the operating performance of the project. At the same time, the company has worked with its advisors and secured lenders to conclude debt restructure negotiations. The decision to put the company into voluntary administration was made after these negotiations failed to result in a deal.