30th Nov 2016 11:43
LONDON (Alliance News) - StratMin Global Resources PLC Wednesday said it is directing its resources on completing a reverse takeover, any may revisit participating in a joint venture with Tirupati Carbons and Chemicals Pvt Ltd.
StratMin became a cash shell under AIM rules after selling its Graphmada subsidiary in September. Under AIM rules it is now required to make an acquisition which constitutes a reverse takeover within six months or trading in its shares will be suspended.
The company said it is focused on reviewing opportunities in the precious metals sector, in particular noting a number of prospects in the gold sector.
"The performance of the gold price has improved over the last twelve months despite a recent pullback due to socio-political events and the board is of the opinion that there are significant opportunities for the company in this sector," StratMin said.
Meanwhile, it has agreed with its joint venture partner Tirupati to open the syndication of their joint venture company Tirupati Resources Mauritius Ltd to new investors. Stratmin currently owns a 1.47% stake in this venture, which owns the Vatomaina licence in Madagascar.
Opening the venture up to new investment will allow Tirupati to speed up development of the Vatomaina large flake graphite project, StratMin said.
Whilst StratMin intends to direct its resources on completed a reverse takeover, it may revisit participating in the venture with Tirupati and the project after the completion of such a takeover.
"The team is conscious of working to complete a suitable transaction in order to maintain the company's admission to trading on AIM. Nothing has been decided yet, but we can say that we are reviewing some very high quality opportunities. Opening the TMV project to new investment enables StratMin to focus on the RTO requirement and dedicate cash to that effort," said Chief Executive Officer Bretty Boynton in a statement.
Shares in Stratmin were up 8.3% at 1.63 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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