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Bass raises A$5m for Graphmada buy

20th September 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Graphite developer Bass Metals will raise up to A$5-million through an institutional placement and entitlement offer to fund the final payment for the acquisition of the Graphmada mine, in Madagascar.

The company on Tuesday announced that it would issue up to 227.3-million fully paid ordinary shares to institutional and sophisticated investors, priced at 1.1c a share, to raise an initial A$2.5-million.

For every four new shares subscribed for in the placement, shareholders would receive one free attaching listed option, with an exercise price of 2.5c each.

The share placement will be done under Bass’s current capacity, and as such will not require shareholder approval.

Meanwhile, a further A$2.5-million will be raised through a one-for-six accelerated nonrenounceable entitlement offer, also priced at 1.1c a share. Additionally, for every four new shares subscribed for in the entitlement offer, shareholders will receive one free attaching option with an exercise price of 2.5c each.

Some 228-million new shares and 57-million new listed options would be issued under the entitlement offer, Bass said on Wednesday.

The offer price of 1.1c a share represented a 31.25% discount to the last traded price of 1.6c a share and a 24.80% discount to the five-day volume weighted average price of Bass shares.

Bass is currently working to optimise the Stage 1 Graphmada operation to produce some 6 000 t/y of concentrate, with the Stage 2 development targeting a production of 20 000 t/y by 2019.

Edited by Creamer Media Reporter

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