18th Jun 2015 10:04
LONDON (Alliance News) - StratMin Global Resources PLC Thursday said it has signed a binding strategic partnership and joint venture agreement with Tirupati Carbons & Chemicals Group Ltd to earn a stake in the Vatomaina graphite project in Madagascar.
StratMin signed the deal with the private Indian-based graphite mining and processing company to earn a 45% interest in Tirupati's subsidiary, which in turn owns a 98% stake in the the Vatomaina project, for a staged investment totalling USD1.5 million. The other 2% stake is held by Tirupati's founder.
Under the deal, StratMin and Tirupati will jointly fund a 12,000 tonne per year graphite mine and processing facility for the Vatomaina project, and StratMin alone will develop a second, 100% owned, 12,000 tonne per year facility adjacent to StratMin's existing operations at Loharano.
Each processing plant is expected to cost around USD4 million.
Tirupati Founder and Managing Director Shishir Poddar has joined the board of StratMin, and Tirupati will also make a staged investment in StratMin, by being issued shares in return for providing technical services.
StratMin said it will pay Tirupati up to GBP300,000 in shares for providing technical services. The shares will be issued in three instalments of GBP100,000 at 5.07 pence. Tirupati also will invest, via an option exchange, in 5.0 million StratMin shares at 6.0p per share and another 5.0 million at 9.0p, with both lots exercisable over a 12- and 18-month period, respectively.
Initial exploration work at Vatomaina has been completed, and the project has a JORC compliant resource which will produce around 12,000 tonnes per year over a 10-year mine life.
In a separate statement Thursday, StratMin said it has completed its exploration programme and preliminary scoping study on the Mahefadok area, where the second processing facility will be built by StratMin as part of the Tirupati deal.
Testing at Mahefadok has confirmed a "large mineralised body" with a strike extent of 1.5 kilometres and trenching across a 150 metre wide width. StratMin said the grades discovered are similar to Loharano.
StratMin is now progressing with a bankable feasibility study for the mine and the processing plant. A drilling programme will also be conducted to secure a JORC compliant resource for the area.
In a third separate statement Thursday, StratMin said it has appointed Sam Quinn as its new company secretary. Quinn has served as the London-based legal counsel and member of the executive management team of several listed and non-listed gold, silver, copper, iron-ore and diamond exploration and development companies over the last decade, it said.
StratMin shares were down 6.2% to 5.98 pence per share mid-morning Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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