Stratmin Global Resources PLC Bass Transaction Update (0080I)
December 04 2015 - 3:03AM
UK Regulatory
TIDMSTGR
RNS Number : 0080I
Stratmin Global Resources PLC
04 December 2015
4 December 2015
StratMin Global Resources Plc
("StratMin" or the "Company")
Bass transaction update
StratMin Global Resources Plc (AIM: STGR), London's only listed
graphite production and exploration company, announces that it has
further progressed the investment by ASX listed, Bass Metals Ltd
("Bass"), into the Company's subsidiary, Graphmada Mauritius,
details of which were initially announced on 2 September 2015, with
further updates on 1 October 2015, 21 October 2015 and 18 November
2015 (the "Investment Agreement").
Amounts totalling GBP277,885 have been received by StratMin to
date and Bass has committed to fully funding the first tranche of
GBP500,000 by 31 December 2015 ("First Tranche"). Bass has further
committed to fully funding the second tranche of GBP1,500,000 by 31
March 2016 ("Second Tranche"). Completion of the First Tranche
delivers Bass a 6.25% interest in Graphmada Mauritius, with
completion of the Second Tranche taking this interest to 25%.
The Investment Agreement also includes an option incentive for
Bass to further increase its holding in Graphmada Mauritius (the
"Option Incentive"). Bass has requested an amendment to the terms
of the Option Incentive such that Bass may acquire up to a further
15% of Graphmada Mauritius under the same option pricing mechanism
as originally agreed on 2 September 2015. The exercise of the
Option Incentive is subject to the completion of the Second Tranche
by 31 March 2016 and must be exercised before 30 April 2016, or a
mutually agreed alternative date. If exercised in part or in full,
the Option Incentive will deliver additional funding to
Stratmin.
The exercise price of the Option Incentive requires Bass to pay
a premium to the implied share price of Stratmin set by reference
to the 5 day volume weighted average price ("VWAP")of Stratmin's
Ordinary Shares according to the following formula:
For 15% interest in Graphmada Mauritius = (x/4.03) multiplied by
GBP1.23 million multiplied by 1.5
where x = the 5 day VWAP in pence per share.
This amendment to the Investment Agreement follows the
settlement of a legal claim by Bass with Singapore-listed, LionGold
Corp Group, that is providing Bass with A$2.5m, as detailed in the
Company's announcement of 18 November 2015, which will be part used
to finance the Investment Agreement in addition to other funding
initiatives being investigated by Bass. The funds received from the
completion of the First Tranche and Second Tranche, and the Option
Incentive if exercised, will be used by Stratmin to progress the
expansion of Graphmada's operations, further details of which will
be provided shortly.
Brett Boynton, CEO, commented:
"We are very pleased to have a schedule for completion of our
deal with Bass so we can finalise the CAPEX budget for the next
phase of our expansion program. Their continued commitment to
extending their position in the farm-in with an agreed premium to
the implied share price in the Option Incentive component of the
Investment Agreement is a great endorsement and shows their
confidence in what we are building."
For further information please visit www.stratminglobal.com or
contact:
StratMin Global Resources Plc +44 (0) 20
Brett Boynton, CEO 3691 6160
Strand Hanson (Nominated & Financial
Adviser) +44 (0) 20
Rory Murphy / Ritchie Balmer 7409 3494
Beaufort Securities (Broker) +44 (0) 20
Jon Bellis 7382 8300
Blytheweigh (Financial PR) +44 (0) 20
Camilla Horsfall/ Megan Ray 7138 3204
This information is provided by RNS
The company news service from the London Stock Exchange
END
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