Stratmin Global Resources PLC USD1.5m loan secured against Bass Metals holding (0064L)
September 28 2016 - 2:00AM
UK Regulatory
TIDMSTGR
RNS Number : 0064L
Stratmin Global Resources PLC
28 September 2016
28 September 2016
StratMin Global Resources Plc
("StratMin" or the "Company")
US$1.5 million non-recourse loan secured against Bass Metals Ltd
holding
StratMin Global Resources Plc (AIM: STGR) is pleased to announce
that it has arranged a US$1.5 million non-recourse loan facility
(the "Loan") secured against the Company's holding of 75,000,000
ordinary shares (the "Bass Shares") of Bass Metals Ltd
("Bass").
Working with a corporate investor that is an existing
stakeholder in Bass, the Company has agreed to assign security and
voting rights over its entire Bass holding, to the lender, in
return for a 12-month non-recourse loan facility. The loan will be
repaid in some or all of the Bass Shares, with no cash amounts
payable. The key terms of the Loan are as follows:
-- US$1.5 million, 12-month non-recourse facility, commencing on 27 October 2016;
-- Secured against the Bass Shares;
-- No interest payable during the term of the Loan;
-- StratMin to assign all voting rights to the Bass Shares upon first drawdown of the facility;
-- The redemption amount of the Loan is set at 120% of the
amount drawn down (the "Basic Redemption Value"), plus 50% of the
value of the Bass Shares in excess of the Basic Redemption Value,
all to be settled by part or all of the Bass Shares (the "Repayment
Shares");
-- If the Bass Shares are worth less than the Basic Redemption
Value on the expiry of the Loan, no further amounts are
payable;
-- StratMin to retain 50% of any value of the Bass Shares in
excess of the Basic Redemption Value by way of retaining any excess
of the Bass Shares over the Repayment Shares;
-- The number of Repayment Shares to be calculated as the 5-day
volume weighted average price ("VWAP") of Bass shares at the
redemption date
-- Drawdown will be according to the following schedule:
Date Amount
----------------- -------------
27 October 2016 US$200,000
----------------- -------------
16 December 2016 US$200,000
----------------- -------------
30 January 2017 US$550,000
----------------- -------------
30 March 2017 US$550,000
----------------- -------------
Total US$1,500,000
----------------- -------------
StratMin became the largest shareholder in Australian Stock
Exchange listed Bass Metals Ltd following the divestment of the
Company's Graphmada investment to Bass, which was completed on 14
September 2016.
As previously announced, a further consideration of up to
A$8,000,000 in Bass ordinary shares is to be paid to StratMin
subject to Graphmada meeting production milestones.
In addition, a net smelter royalty of 2.5 per cent on Graphmada
production, capped at A$5,000,000, will begin on 22 February
2017.
The Loan will be used to fund the Company's investment
commitment to the Tirupati Resources Mauritius ("TRM") joint
venture and for general working capital.
TRM owns the Vatomaina project in Madagascar, a 12,000 ton per
annum large-flake graphite project, currently being developed by
Tirupati Carbons and Chemicals Pvt Ltd.
Brett Boynton, CEO, commented:
"By working with existing Bass stakeholders and leveraging the
value of the voting block held by the Company, we were able to
secure funding on terms well in excess of the open market value of
the Bass shareholding. This facility gives us capacity to fully
fund our commitment to our joint venture partner without any delay
to the planned development of the Vatomaina project.
Now that Vatomaina is funded, we will work with Tirupati to
release a detailed project review and update for shareholders
within the week."
For further information please visit www.stratminglobal.com or
contact:
StratMin Global Resources Plc +44 (0) 20
Brett Boynton, CEO 3691 6160
Allenby Capital (Nominated Adviser
& Broker)
John Depasquale/Nick Harriss/Liz +44 (0) 020
Kirchner 3328 5656
Optiva Securities (Broker) +44 (0) 20
Christian Dennis 3137 1903
VSA Capital Limited (Financial
Adviser) +44 (0) 20
Andrew Raca 3005 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
IODFMGZLNNMGVZM
(END) Dow Jones Newswires
September 28, 2016 02:00 ET (06:00 GMT)
Stratmin Global (LSE:STGR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Stratmin Global (LSE:STGR)
Historical Stock Chart
From Jul 2023 to Jul 2024