19 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 its resumption to trading on the ASX and the timetable to completion of the acquisition of the Company's 93.75 per cent. owned subsidiary, Graphmada Mauritius ("Graphmada"), (the "Divestment"). Stratmin is pleased to report that formal completion of the transaction is expected on Monday 22 August following the Bass General Meeting and that Bass plans to close retail component of their fully underwritten capital raise of up to A$7 million by Friday 26 August. Proceeds from this underwritten rights issue and placement, together with existing cash resources of Bass, will fund the cash component of the acquisition of Graphmada and expansion of operations at Loharano and Mahefedok.
As previously announced, the consideration for the 93.75 per cent. of issued shares in Graphmada is up to A$15.25 million and is to be settled as follows:
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A cash payment to Stratmin at completion of A$1,500,000, which is expected to be received by 30 August 2016;
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An equity payment to Stratmin of up to A$8,750,000 in Bass shares in the following 3 tranches:
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A$750,000 via the issue of 75,0000,000 Bass shares, at completion (expected to be received by 30 August 2016);
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A$3,000,000 worth of Bass shares upon achieving production output of 1,250t of graphite concentrate over a consecutive month period ("Tranche 2"); and
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A$5,000,000 worth of Bass shares upon achieving production output of 2,250t of graphite concentrate over a consecutive month period ("Tranche 3").
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A net smelter royalty of 2.5% capped at A$5,000,000 beginning six months after execution of the Divestment.
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At the close of trading on the ASX on 18 August 2016, Bass' share price was A$0.015.
The Bass shares issued under Tranche 2 and Tranche 3 will be valued on Bass' volume weighted average share price over the 20 trading days immediately prior to the achievement of the production milestones.
The fully underwritten Bass rights issue and placement was managed by Bizzell Capital Partners and Patersons Securities, two Australian stockbrokers with significant expertise in the financing of graphite projects.
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 completion of the Divestment and maintain the admission of Stratmin's ordinary shares to trading on AIM.
Vatomaina project
In addition, the Company has been preparing to initiate funding of the Joint Venture with partner, Tirupati Carbons and Chemicals Pvt Ltd, to develop a 12,000 ton per annum flake graphite concentrate mine and processing plant at Vatomaina in Madagascar. The Vatomaina project has progressed significantly since the Joint Venture was first agreed in February 2015 and is now entering development stage.
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.
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