StratMin notes deal with Bass Metals over Graphmada

2nd Sep 2016 14:55

(ShareCast News) - StratMin Global Resources noted on Friday that Bass Metals has notified the Australian Stock Exchange of the issuance of equity in relation to Bass' recent capital raise, and the initial equity settlement component due to StratMin for the acquisition of Graphmada Mauritius.The AIM-traded company said it issued 75 million new Bass ordinary shares at a price of $0.01 per share as part of the consideration for the divestment of Graphmada Mauritius.Stratmin would now become a significant shareholder in Bass, as defined by the ASX, with an initial 6.3% shareholding, the board confirmed.A further consideration of up to AUD 8m in Bass Ordinary Shares is to be paid to StratMin subject to Graphmada meeting certain production milestones.StratMin added that a net smelter royalty payment from Bass of 2.5%, capped at AUD 5m will begin in six months."StratMin and Bass are now finalising the working capital adjustment to the cash consideration payable of AUD 1.5m, of which AUD 0.6m has already been received by StratMin, with the balance expected in the next week," StratMin's board said in a statement."StratMin and Tirupati are now finalising funding for the 12,000 tpa Vatomaina flake graphite joint venture."Initiation of funding is expected within the next 12 days."