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StratMin secures $1.5m loan

28th September 2016

By: Anine Kilian

Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Aim- and ASX-listed StratMin Global Resources has arranged a $1.5-million nonrecourse loan facility secured against the company's holding of 75-million ordinary shares of Bass Metals.

Working with a corporate investor that is an existing stakeholder in ASX-listed Bass, StratMin has agreed to assign security and voting rights over its entire Bass holding to the lender in return for the 12-month nonrecourse loan facility.

The loan will be repaid in some or all of the Bass shares, with no cash amounts payable. 
A further consideration of up to A$8-million in Bass ordinary shares is to be paid to StratMin subject to the Madagascar-based graphite project Graphmada meeting certain production milestones. 

The loan will be used to fund StratMin’s investment commitment to the Tirupati Resources Mauritius (TRM) joint venture and for general working capital.

TRM owns the Vatomaina project in Madagascar, a 12 000 t/y large-flake graphite project being developed by Tirupati Carbons and Chemicals.

"By working with existing Bass stakeholders and leveraging the value of the voting block held by the company, we were able to secure funding on terms well in excess of the open market value of the Bass shareholding,” says StratMin CEO Brett Boynton.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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