Stratmin Global Resources PLC Proposed acquisition of Graphmada (7160Q)
November 09 2012 - 2:30AM
UK Regulatory
TIDMSTGR
RNS Number : 7160Q
Stratmin Global Resources PLC
09 November 2012
StratMin Global Resources plc
("StratMin" or the "Company")
Proposed acquisition of Graphmada Equity Pte. Limited
StratMin Global Resources Plc (AIM: STGR), the AIM quoted
natural resource investment company focused on graphite mining and
exploration, is pleased to announce the conditional acquisition
("Acquisition") of the remaining 85% of shares in Graphmada Equity
Pte Ltd ("Graphmada") not already owned by the Company for a
consideration of GBP25.5 million, to be satisfied through the issue
of new ordinary shares in StratMin.
Graphmada
Graphmada is the holding company of Graphmada SARL ("Graphmada
Madagascar").
Graphmada Madagascar is a graphite mining company with
operations in Madagascar. Global demand for graphite is increasing
and natural graphite is scarce. Graphite has growing importance in
high technology and green energy applications, and has been
declared supply-critical by both the US and the European Union.
China, which produces approximately 70% of the world's supply
(2011) has recently imposed a 20% duty on all exports.
The Republic of Madagascar hosts some of the highest quality
flake graphite deposits in the world. GraphmadaMadagascar holds two
exploitation permits located in eastern Madagascar 15 km west of
the coast and 20km south west of Brickaville. The permits were
issued to by the Bureau du Cadastre Minier de Madagascar.
Exploitation Permit No 26670, referred to as the Loharano
Licence, extends over 12.5 sq km. The permit was granted on 21
January 2008 for a period of 40 years. The second exploitation
Permit No 24730, known as the Antsirabe Licence, covers an area of
6.25 sq km, and was granted on 5 March 2007 for a period of 40
years.
Resources and production facilities
The Admission Document will include a Competent Persons' Report
on Graphmada Madagascar's current main licence area, Loharano 1
(northern block) ("Loharano"), which estimates that the block
contains a 5.7 million tonne JORC standard inferred resource and an
indicated resource containing an estimated graphite resource of
234,659 tonnes. The Company believes the additional licence areas
are highly prospective, providing considerable exploration upside
potential.
Graphmada Madagascar has completed the construction of a
graphite processing plant at Loharano, where calibration of the
production circuit is complete and trial production of graphite at
the siteis proceeding. This plant has been designed to produce
approximately 12,000 tonnes of processed graphite per annum at full
capacity. Stratmin has been working closely with the Graphmada team
to meet the proposed development timelines and production
objectives.
Acquisition, Placing and Expected Timetable
The Acquisition will constitute a reverse takeover under the AIM
Rules for Companies and will therefore be subject to shareholder
approval. It is also subject to the successful completion of a
conditional placing to raise additional funding for the enlarged
group from institutional and other investors, which is being
arranged by the Company's brokers. Once the Placing funds have been
raised conditionally, a circular in the form of an Admission
Document will be published and sent to shareholders, providing
further information on Graphmada and the terms of the
Acquisition.
Pending the publication of the Admission Document, trading in
the Company's shares will be suspended with effect from 7.30 am on
9 November 2012.
Gobind Sahney, Chairman of StratMin, commented "This transaction
delivers full ownership and 100% of the upside potential of
Graphmada's world-class Madagascan graphite project. We consider
this to be a particularly exciting opportunity and look forward to
working more closely with Graphmada to realise the potential of
this unique asset and maximise shareholder value."
For further information please visit www.stratminglobal.com or
call:
StratMin Global Resources Plc
+44 (0) 207 467
Gobind Sahney 1700
Libertas Capital Corporate Finance Limited
(Nomad and Joint Broker)
+44 (0) 207 569
Sandy Jamieson 9650
Peterhouse Corporate Finance
(Joint Broker)
+ 44 (0) 20 7562
Jon Levinson 3357
Optiva Securities Limited
(Joint Broker)
+44 (0) 20 3137
Jeremy King 1904
Tavistock Communications
(Financial PR and IR)
+44 (0) 207 920
Jessica Fontaine/Simon Hudson/Conrad Harrington 3150
About StratMin:
StratMin Global Resources Plc is a natural resources investment
company with a main focus on graphite development in Madagascar.
The Group's objective is to make investments in meaningful
ownership positions of operating companies and assets that have
potential for significant value growth in the natural resource and
extractive industries, whose value can be enhanced with our capital
and expertise, and realise gains that are a multiple to the
investment.
http://www.stratminglobal.com/
-ends-
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The company news service from the London Stock Exchange
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