Stratmin Global Resources PLC Bass Transaction Completion (8042J)

TIDMSTGR

RNS Number : 8042J

Stratmin Global Resources PLC

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

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September 14, 2016 03:45 ET (07:45 GMT)

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