Stratmin Global Resources PLC Completion of £500,000 first tranche funding (6665K)

TIDMSTGR

RNS Number : 6665K

Stratmin Global Resources PLC

04 January 2016

4 January 2016

StratMin Global Resources Plc

("StratMin" or the "Company")

Completion of GBP500,000 first tranche funding from Bass

StratMin Global Resources Plc (AIM: STGR), London's only listed graphite production and exploration company, announces that ASX listed Bass Metals Ltd ("Bass") completed the transfer of the remaining portion of the first tranche funding of GBP500,000 under the deal announced on 2 September 2015 (the "Transaction").

With the completion of this tranche of funding, Bass owns 6.5% of Graphmada Mauritius and StratMin holds the balance. The companies are now working together to complete the second tranche of funding of an additional GBP1,500,000 by 31 March 2016, after which the Bass holding in Graphmada Mauritius will increase to 25%. The investment of GBP2,000,000 is based on a valuation of Graphmada Mauritius of GBP6,000,000 or 4.03p per share value for StratMin, a significant premium to the current share price.

Funding provided by Bass over the last four months has been applied to a number of improvements in plant and machinery at the Loharano operation. The final transfer has enabled Stratmin to order a complete new power supply solution for the plant and a new Cummins diesel generator is currently being prepared for delivery to site. This is a key component in the on going plant refurbishment program. The new generator capacity will enable reliable power supply matched to the increased demand from production expansion over the last quarter. The new unit ordered has acoustic dampening, so in addition to expected gains in fuel efficiency it will also cut the noise footprint, making us better neighbours in our community.

Brett Boynton, CEO, commented:

"The completion of the first tranche of funding from Bass gets us off to a great start for 2016. We had an extremely busy final quarter in 2015 with increased production and parallel plant refurbishments, but the team are already back on site after a short break over the festive season.

"We are working well with Bass and are very encouraged with the response from the Australian market. The next quarter will be a busy one again with a lot of activity on site and at a corporate level as we continue to work though our upgrade program and focus on increasing sales."

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 Belliss                             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

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