1st Oct 2015 10:04
LONDON (Alliance News) - StratMin Global Resources PLC Thursday said the initial investment by Bass Metals Ltd in the company is "progressing as expected".
In early September, Stratmin agreed a farm-in deal with Australian-listed Bass, which has acquired a 25% stake in the subsidiary that holds the Loharano graphite project in Madagascar for GBP2.0 million.
On Thursday, Stratmin said it had received payments from Bass totalling GBP75,000, and said Bass has announced that it is funding the total commitment with a placement to sophisticated investors and existing shareholders.
The placement is at a 30% premium to the share price of Bass on the date of the announcement of the deal, Stratmin said.
"It is very encouraging to see the market support for our new partner Bass Metals Ltd. They have managed to raise funds at a significant premium to their share price at the time of the original announcement of our deal," said Stratmin Chief Executive Brett Boynton.
As a result of the placing, Stratmin and Bass have agreed to extend the completion date of the deal until October 21.
"This is a clear indication of the support from the Australian graphite market for what we are doing at StratMin. I am looking forward to closing out the remainder of this transaction with Bass and accelerating the expansion programme with the resulting additional funding," said Boynton.
Stratmin shares were trading flat at 5.0 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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