Stratmin Global Resources PLC Proposed acquisition of Graphmada (7160Q)

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-

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQBKFDNFBDDKDK

Stratmin Global (LSE:STGR)
Historical Stock Chart
From Jun 2024 to Jul 2024