G+T has advised Strandline Resources Limited (ASX:STA) (Strandline) on the sale of its Tanzanian mineral sands projects (Tanzanian Projects) to a subsidiary of Shanghai Stock Exchange listed Shenghe Resources Holding Co., Ltd (Shenghe). Strandline will receive a total consideration of A$43 million split between:

• A$27.2 million for the sale of its shares in the Tanzanian Projects; and
• $15.8 million for the assignment of the inter-company loans Strandline has provided to fund its Tanzanian Projects.

Proceeds from the divestment will be used by Strandline to reduce its debt by repaying its existing super senior indebtedness. Strandline is also in discussion with its financiers to ensure maximum liquidity is retained.

The G+T team was led by Corporate Advisory partner Michael Blakiston, with support from lawyer Shay Kiriakidis. G+T was also assisted by Jan Mellmann (partner) and David Bath (senior associate) of Watson Farley & Williams LLP in the United Kingdom and Michael Strain (partner) and Evarist Kameja (senior associate) of Bowmans in Tanzania. 

Michael Blakiston commented on the transaction:

“We are delighted to have supported Strandline Resources on this sale, it signifies an important step for Strandline in reducing debt and increasing liquidity. We extend our best wishes for their continued success."