JOHANNESBURG (miningweekly.com) – ASX-listed Bass Metals has informed London-listed graphite production and exploration company StratMin that it will complete the remaining payments for the first tranche of the company’s £2-million earn-in agreement to acquire a 25% stake in StratMin’s Graphmada Mauritius subsidiary by December 31.
Following negotiations, the second tranche, totalling £1.5-million would be deferred until the first quarter of 2016.
This followed Bass entering into a deed of settlement with gold company Liongold after the termination of agreements for the sale of Bass’ shares in Hellyer Mill Operations and a proposed subscription by Liongold for shares in Bass.
The deal would see Liongold paying Bass A$2.5-million in a series of staged payments, starting on December 31 and ending on June 30, 2016.
Commenting on Bass’ commitment to the first tranche payment, StratMin CEO Brett Boynton said it was an “outstanding” development.
“With zero dilution for shareholders, Bass has substantially funded its 25% farm-in to Graphmada.
"We have worked closely with the Bass team over the last few months to bring in the minimum funding required and give them time to achieve this settlement. They are now positioned to complete the initial tranche of our deal and further capitalise their company to fund the expansion of our graphite production through their investment in Graphmada,” he remarked.
The Australian market reacted positively to the news, with Bass’ shares trading up over 25% on Wednesday.
“Getting to this outcome required patience, but the time has been well used, with the StratMin ground team making significant headway on the refurbishment programme at the plant.
“24-hour production is continuing. We have been extremely busy on site and will shortly be able to share updates on both production advances and interim results from the exploration programme. We are looking forward to a strong run to the year end and an exciting year ahead,” said Boynton.
StratMin, which owns the Loharano mine, in Madagascar, was working towards expanding production capacity to 6 000 t/y of processed flake graphite.