Bass Metals to Acquire Stratmin’s Graphmada Graphite Mine, Madagascar
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Bass Metals Ltd completed due diligence to acquire the Graphmada Large Flake Graphite Mine in eastern Madagascar from Stratmin Global Resources .
Unlike 99 percent of its peers, the acquisition would provide Bass Metals with control of an operating graphite mine that is generating cash flow and has a sustainable offtake agreement in place with a US based partner.
The consideration for the mine will include a payment of $1,500,000 and the issue of $750,000 worth of Bass shares at $0.01 each.
Stratmin will also be entitled to a net smelter royalty of 2.5 percent capped at $5 million and up to $8 million worth of Bass shares on achieving production milestones.
The Graphmada mine hosts four known deposits with the Loharano deposit being currently mined.
Significantly, a 6,000 product tonne per annum processing plant is installed on site, with drying and packaging facilities.
Bass Metals will execute a low capital expansion plan to increase production and cash flow from the mine.
Meanwhile, the company will look to divest its Tasmanian zinc-lead assets.
Source: (May 27, 2016) Proactive Investors
About Bass Metals
Bass Metals Ltd is focused on minerals exploration.
To stop by Bass Metals’ website, CLICK HERE
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