Ganzhou Chenguang Rare Earths New Material Co., Ltd. signed a share purchase agreement to acquire Strandline Resources Uk Limited from Strandline Resources Limited for AUD 43 million.

Ganzhou Chenguang Rare Earths New Material Co., Ltd. signed a share purchase agreement to acquire Strandline Resources Uk Limited from Strandline Resources Limited (ASX:STA) for AUD 43 million on May 20, 2024. The transaction also includes the acquisition of Tanzanian mineral sands projects. As part of consideration, Ganzhou Chenguang will pay AUD 27.2 million in cash and AUD 15.8 million for the assignment of the inter-company loans, Strandline has provided to fund its Tanzanian Projects.

As of December 31, 2023, Strandline Resources Uk reported a total assets of AUD 15.5 million, net assets of AUD 1.8 million and net loss of AUD 0.27 million. The proceeds from the transaction will be used to repay existing super senior indebtedness and for working capital. The completion is subject to obtaining all necessary regulatory and government approvals, including Tanzanian and Chinese government approvals and there being no material adverse change, including a material breach of a warranty provided by Strandline or the licenses for its Tanzanian projects being revoked.