PERTH (miningweekly.com) – Graphite miner Bass Metals will exercise 180-million options, with the exercise proceeds valued at A$4.5-million, representing 28% of the current listed options on issue.
The ASX-listed company told shareholders that Bass had entered into an underwriting agreement with Bizzell Capital Partners to underwrite the exercise of a portion of the company’s listed options.
Of the underwritten amount, Bizzell has entered into agreements with a number of option holders for around A$2.5-million to be exercised immediately, and for the balance to be exercised prior to the end of June, to provide Bass with near-term funding.
As part of the early option exercise, Bass directors have committed to exercise options valued at A$200 000, with all senior management also committing to the early exercise for some of their options.
Bass CEO Tim McManus said on Friday that the exercise of options was a pleasing outcome, and allowed the company to continue to pursue its overall strategy to become a substantial producer of industrial concentrates.
“We are pleased with the ramp-up at Graphmada and excited to be in proximity to cash flow. We look forward to leveraging off all the hard work and experience gained from Stage 1 to move to Stage 2 of the upgrade and expansion at Graphmada, while conducting advanced exploration at some of our highly prospective tenements, in particular Millie’s Reward.”