18th Nov 2015 09:41
LONDON (Alliance News) - StratMin Global Resources PLC on Wednesday welcomed an announcement by Bass Metals Ltd, as its funding partner entered into an agreement that will see Liongold Corp Ltd pay AUD2.5 million to Bass in settlement of litigation.
The litigation in question was taking place in the Supreme Court of Western Australia. It followed the termination of agreements for the sale of Bass Metals' shares in Hellyer Mill Operations Pty Ltd and a proposed subscription by Liongold for shares in Bass, according to Bass Metals' announcement.
The AUD2.5 million will be paid in a series of staged payments from December 31 to the end of June 2016.
"This is an outstanding development for Bass and StratMin. With zero dilution for shareholders, Bass has substantially funded their 25% farm in to Graphmada [in Madagascar]," StratMin Chief Executive Brett Boynton said in a statement.
"We have worked closely with the Bass team over the last few months to bring in the minimum funding required and give them time to achieve this settlement. They are now positioned to complete the initial tranche of our deal and further capitalise their company to fund the expansion of our graphite production through their investment in Graphmada," Boynton said.
"Getting to this outcome required patience, but the time has been well used with the StratMin ground team making significant headway on the refurbishment programme at the plant. Twenty-four hour production is continuing. We have been extremely busy on site and will shortly be able to share updates on both production advances and interim results from the exploration program. We are looking forward to a strong run to the year end and an exciting year ahead," Boynton added.
Shares in StratMin were up 5.1% at 3.81 pence on Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
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