JOHANNESBURG (miningweekly.com) – Australia’s Bass Metals said on Thursday that it would move ahead with the acquisition of a large flake graphite mine in Madagascar.
Announcing the completion of a due diligence, chairperson Rick Anthon said that the acquisition of the operating Graphmada mine from Aim-listed StratMin Global Resources would set Bass apart from its peers as the only ASX-listed graphite mining company delivering cash flow.
A due diligence and site visit to Graphmada confirmed that the mine had potential for low capital expenditure and low cost production.
“The company is now seeking to add an experienced CEO and management team to lead the business and implement Bass’s low capital expansion plans,” Anthon said.
Currently, only one of four known deposits at Graphmada was being mined, with a second deposit undergoing trial mining.
The Graphmada mine has offtake agreements in place and a solid customer base. Production from the mine totalled 1 500 t in 2015, with a high proportion being large flake graphite with a 94% purity.
The transaction with StratMin, announced on April 1, was expected to be completed in late July.
Bass, which already owned 6.25% of Graphmada, would acquire the remaining 93.75% of the mine for A$15.25-million in staged cash, equity and royalty considerations.
Graphmada was StratMin’s only significant asset, the company was required to gain shareholder approval.
StatMin was also required to acquire another asset or relist on the exchange as an investing company.