22nd Dec 2016 10:29
LONDON (Alliance News) - StratMin Global Resources PLC said Thursday it has received the first payment owed to it over share payments from Bass Metals Ltd.
StratMin said it has received a first payment of AUD955,000, of a total AUD2.6 million.
The company also confirmed its placement of 70.0 million shares in Bass has occurred and it expects to receive the proceeds before the year-end. StratMin has previously said the placement will be at a minimum price of 1.3 cents per share, providing AUD910,000 in cash.
Last Thursday, StratMin said it reached an early settlement with Bass, amid concerns that StratMin might need to raise capital in the near future.
StratMin became a cash shell under AIM rules after selling its Graphmada subsidiary to Bass in September, with much of the consideration of that sale having been agreed in future payments of equity in Bass.
StratMin was to be issued equity in Bass in two tranches of AUD3 million and AUD5 million, subject to Bass meeting some performance criteria by the end of 2017 and 2018.
However, Bass approached StratMin with an offer to settle the payments in cash and facilitate the sale of StratMin's remaining 70 million shares in Bass, StratMin said.
Shares in StratMin were up 4.7% at 1.44 pence Thursday morning.
By Adam Clark; [email protected]
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