Ann: Strandline agrees to sell Tanzanian mineral sands assets, page-5

Actually, this stinks more than first sniff... I call BS.

Board have agreed to sell one of STA's only two assets of note without a shareholder vote. If pushed, I'm sure the board will hide behind th excuse that Coburn is STA's major asset and thus Tanzania is a 'non-core asset' that doesn;t require shareholder approval for disposal.

Thing is, Coburn is not an asset but a liability atm, and in all probability is valued at much less than the debt secured against the project. Doesn;t matter that the project has invested ~$350M into property, plant etc... it owes $300M in liabilities and permanent, if not fatal, flaws mean the mine is both at high risk of going broke now or in the future, even after a debt haircut and restructure. Given the high debt load and inability to make positive cash, it is very likely valued at zero in an industry sale as a going concern with full debt still attached.

Tanzania on the other hand is unencumbered by debt and worth $43M to at least one buyer obviously. In short, that makes Tanzania STA s largest and most valuable asset and Coburn an insignificant asset probably better let go for nothing.

As a STA shareholder, I would like to vote on whether to sell our most valuable asset and tip those proceeds into repaying super senior secured creditors and possibly/probably see that value disappear quickly in an Administration restructure. The attraction to creditors to sell our best asset to repay them and bolster Coburn for any restructure is clear. The attraction to the board is not so clear... except for the $750k bribe to do it (9plus whatever else the gravy train NEDs are pocketing)

Just a look at the time line of announcements and it's obvious Tanzania was on the cusp of Taraji guv approvals and that discussions with buyers for Tanzania were getting closer to fruition. (below taken from Dec Qtrly 31st Jan'24)

"The Company further progressed discussions with potential strategic partners (including options for joint venture and offtake partners). These discussions are expected to continue as the Company refines its commercialisation plans for the Tanzanian assets."

Patraiaca agrees to accept $750K bonus if he repays super senior creditors on the hook and sweating bullets 15th Mar, which we all knew would require a Tanzania sell down. Two weeks latewr Tanzania signs off on the final Taraji permit. Three weeks later the Board agree to sell to Shenghe who must have been banging on the door with checkbook for 6 months.... what trotters in the trough shareholder stich up


The course of action is clear for the Top 20 imo... Decide, realistically, whether or not that $43M of Tanzania money would be better off in STA as a shell or distributed to shareholders or risk losing the lot trying to bail out super senior creditors and hope Coburn doesn;t burn you?

You all know my thoughts, Coburn will get restructured and existing shareholders wol;t get anything like the 3c cash selling Tanzania would bring (or more if Tanz was held and STA moved forward with it in some JV). Either way, I hate the though the board can be bribed into not seeking shareholder vote, and it';s probably a breach of their duties and ASIC rules if they don't...

GLTAH