Stratmin Global Res - Bass Transaction Update
RNS Number : 7857H
Stratmin Global Resources PLC
22 August 2016
 

22 August 2016

 

 

StratMin Global Resources Plc

("StratMin" or the "Company")

Bass Transaction Update

StratMin Global Resources Plc (AIM: STGR), notes the announcements made today by Bass Metals Ltd ("Bass") on the Australian Stock Exchange ("ASX") regarding the approval at the Bass General Meeting of all resolutions including, inter alia, completion of the acquisition of Graphmada Mauritius ("Graphmada") and issuance of Bass Ordinary Shares to Stratmin in part consideration for the acquisition of Graphmada. Bass separately announced taking full operational control of Graphmada with immediate effect.

 

1.    Bass announced to the ASX today final shareholder approval for the acquisition of Stramin's 93.75 per cent. interest in Graphmada.

 

2.    Bass has taken control of all Graphmada operations, effective immediately.

 

3.    The cash consideration, payable by Bass to Stratmin, is A$1,500,000, which is expected to be received by 30 August 2016.

 

4.    This cash payment will be met from existing Bass cash resources and a fully underwritten rights issue.

 

5.    The first part of the equity consideration includes an immediate allocation of 75 million Bass Ordinary Shares, which is expected to be received on 30 August 2016.

 

6.    At the close of trading on the ASX on 22 August 2016, Bass' share price was A$0.024, up 60 per cent. for the day, valuing Stratmin's holding at A$1,800,000.

 

7.    Further consideration of up to A$8,000,000 in Bass Ordinary Shares to be paid to Stratmin subject to Graphmada meeting certain production milestones.

 

8.    A net smelter royalty payment from Bass of 2.5 per cent, capped at A$5,000,000, will begin in six months.

 

 

With the sale conditions now met and Bass taking over operational responsibility for Graphmada, Stratmin will focus on the development of the Vatomaina Joint Venture with technical partner Tirupati Carbons and Chemicals Pvt Ltd. The Joint Venture includes the development of a 12,000 ton per annum flake graphite concentrate mine and processing plant at Vatomaina in Madagascar. Initial funding will be directed to site preparation and drilling for mine planning purposes. The Joint Venture company is already profitably trading third party graphite from Malagasy based producers. Please refer to the Company's announcement of 7 July 2016 for further information on the Vatomaina project.

 

In addition to the Vatomaina Joint Venture and, as previously advised, the Board has been pursuing a number of corporate opportunities and remains confident that it will be able to complete a reverse takeover transaction within the six months following final settlement on the divestment (expected to be 30 August 2016) and maintain the admission of Stratmin's ordinary shares to trading on AIM.

 

Brett Boynton, CEO, commented:

 

"This is a great outcome for Stratmin and all Bass shareholders. The proceeds for the sale of Graphmada, which we are shortly to receive from Bass, means we are well funded to pursue our joint venture with Tirupati on the Vatomaina project and leverage everything the team has learned over the last year in Madagascar in developing our new graphite mine and processing plant."

 

For further information please visit www.stratminglobal.com or contact: 

 

StratMin Global Resources Plc

Brett Boynton, CEO

+44 (0) 20  3691 6160

Strand Hanson (Nominated & Financial Adviser)

Rory Murphy / Ritchie Balmer

+44 (0) 20 7409 3494

Beaufort Securities (Broker)

Jon Bellis

+44 (0) 20 7382 8300

Optiva Securities (Broker)

Christian Dennis

+44 (0) 20 3137 1903

 


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