Stratmin Global Resources PLC Bass Transaction Completion (8042J)
September 14 2016 - 3:45AM
UK Regulatory
TIDMSTGR
RNS Number : 8042J
Stratmin Global Resources PLC
14 September 2016
14 September 2016
StratMin Global Resources Plc
("StratMin" or the "Company")
Bass Transaction Completion and Tranche One Settlement
StratMin Global Resources Plc (AIM: STGR) is pleased to announce
completion of the divestment of Graphmada Mauritius ("Graphmada")
to Bass Metals Ltd ("Bass") (the "Divestment") with execution of a
final Settlement Deed and the receipt of the A$600,000 balance of
the A$1.5 million Tranche One cash payment expected to clear
international banking in the next twenty four hours. Coupled with
the issuance of 75 million Bass Ordinary Shares to the Company,
which occurred on 2 September 2016, this completes Tranche One of
the Divestment consideration.
As previously announced, further consideration of up to
A$8,000,000 in Bass Ordinary Shares is to be paid to Stratmin
subject to the operations of Graphmada meeting certain production
milestones. In addition, a quarterly net smelter royalty payment
from Bass of 2.5 per cent, capped at A$5,000,000, will begin in six
months.
The Company has also agreed to assist Bass in the recovery of a
VAT credit for Graphmada S.A.R.L. in return for an equal share in
the balance recovered. The VAT credit at Graphmada S.A.R.L. as at
the date of this agreement is GBP486,502, generating a potential
further payment from Bass of up to GBP243,251 from this
transaction.
As previously advised, the Board has been actively pursuing a
number of corporate opportunities and is confident that it will be
able to complete a transaction within six months of completion of
the Divestment which provides the Company with the necessary
compliance to maintain the trading of its ordinary shares on AIM.
Failing this, the Company's ordinary shares will be suspended from
trading on AIM.
Brett Boynton, Executive Chairman, Commented:
"We are very pleased to have this first phase of the divestment
successfully completed. As the largest shareholder in Bass,
StratMin is well positioned to benefit from their fully funded
expansion program and we are constantly looking at ways to maximize
the value of this investment. Partnering on the recovery of the VAT
is one of the many ways we will be leveraging our in-country and
industry expertise to help Bass."
This announcement contains inside information.
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
Optiva Securities (Broker) +44 (0) 20
Christian Dennis 3137 1903
This information is provided by RNS
The company news service from the London Stock Exchange
END
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