Stratmin Global Resources PLC Operational Update (3344V)

TIDMSTGR

RNS Number : 3344V

Stratmin Global Resources PLC

12 December 2013

StratMin Global Resources Plc

("StratMin" or the "Company")

Operations Update, First Income Received and Scrubber Delivery Timeline

StratMin (AIM: STGR), the graphite production and exploration company with assets in Madagascar, announces that it has completed its first sales order and updates the market on the installation of key equipment.

Highlights:

-- Preliminary 200 tonne order of +70 per cent carbon content graphite completed with the final shipment departing on 24 December 2013.

-- Lohorano expected to produce at an initial run rate of between 150 and 200 tonnes of graphite per month of +85 per cent graphite, starting in February 2014.

-- First graphite shipment received by Grafitbergbau Kaiserberg of Austria which has confirmed grades of up to 75.8 per cent, with payment for first consignment received.

-- Further shipments tested by the Company (which are still in transit) demonstrated higher grade samples.

-- The Company is in discussions with purchasing agents to agree future terms for the sale of its higher grade product.

-- 2.1m by 4.8m MechProTech scrubber and pumps have been purchased and are due to arrive on site in January 2014.

-- Further works on plant are underway, in preparation for scrubber installation, including installation of necessary pipework and civil engineering which will be completed by the end of January 2014.

Commenting on the operations update, Manoli Yannaghas, StratMin's Managing Director, said, "With the results of our metallurgy test work, completion of our first sales contract and completion of planning for 2014 , Stratmin is well placed to realise its potential."

OPERATIONS UPDATE

Sales Contract Completion

The Company's first contract to produce 200 tonnes of +70 per cent graphite at below 5 per cent moisture has been completed. The final consignment will leave the port of Tamatav on 24 December 2013 and is expected to arrive in Austria in February 2014. The first shipment has been received by Grafitbergbau Kaiserberg, sampling confirmed grades of up to 75.8 per cent graphite. The Company has also carried out preliminary test work on all shipments, these confirm above 70 per cent content with certain samples grading up to 81 per cent on later shipments. All of the graphite shipped has a >60mesh flake size, and the majority was >40mesh.

The Company has received payment for the first shipment, with further payments expected as shipments arrive in Austria throughout December 2013 and January 2014.

The Company has strong relations with a number of graphite purchasing agents and is in discussions to agree future terms for the sale of its higher grade product. The Company is confident this will be achievable, at least in part, on a Free on Board (FOB) basis, reducing the time between production and payment.

Scrubber Delivery

Under the guidance of Promet Dadi Africa (Pty) Ltd, the Company's consultant metallurgists, a near new second hand scrubber from a reputable South African manufacturer MechPro Tech (Pty) Ltd has been purchased. Measuring 2.1m by 4.8m the scrubber comes with manufacturer support and limited warranty (the scrubber will perform the same role as the pebble mill previously announced to the market). In the process of being loaded, the scrubber is expected to be in Madagascar in the second week of January 2014. The scrubber should be installed and in production in February 2014.

In preparation for this, the processing plant has been stopped in order that essential civil engineering works to support the scrubber may be completed by mid-January 2014. Production will restart once the scrubber has been installed.

Subject to machinery reliability the Company expects the plant to produce an initial run rate of between 150 and 200 tonnes of graphite per month of +85 per cent graphite, starting in February 2014.

For further information please visit www.stratminglobal.com or contact:

 
                                                     +44 (0) 20 3691 
 StratMin Global Resources Plc                        6160 
 Manoli Yannaghas (Managing Director) 
 
 Peel Hunt LLP (Nomad & Broker)                      +44 (0) 20 7418 
  Matthew Armitt / Ross Allister                      8900 
 
 Blythe Weigh Communications                         +44 (0) 20 7138 
  Tim Blythe / Halimah Hussain / Camilla Horsfall     3204

-ends-

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