JOHANNESBURG (miningweekly.com) – Bass Metals’ A$15.25-million acquisition of StratMin Global Resources’ Graphmada Mauritius subsidiary is expected to formally conclude on Monday.
Bass, which already held a 6.25% stake in the graphite operations, resumed trading on the ASX on Friday, outlining a timeline for its buyout of the remaining 93.75% stake it did not already own.
StratMin welcomed Bass’s fully underwritten capital raise of up to A$7-million to add to the existing cash funds for the acquisition, as well as the expansion of operations at Loharano and Mahefedok, by August 26.
Bass will make a A$1.5-million cash payment to StratMin on August 30, followed by a three-tranche equity payment to StratMin of up to A$8.75-million and royalty considerations.
With StratMin disposing of its only significant asset, the company is now required to acquire another asset or relist on the LSE as an investing company.
“The board has been pursuing a number of corporate opportunities and remains confident that it will be able to complete a reverse takeover transaction within the six months following completion of the divestment and maintain the admission of its ordinary shares to trading on the Aim market,” it explained in an update to shareholders on Friday.
Meanwhile, StratMin is initiating funding of a joint venture development with Tirupati Carbons and Chemicals for the site preparation and drilling for the construction of a 12 000 t/y flake graphite concentrate mine and processing plant at Vatomaina, in Madagascar.