Bass Metals Ltd to acquire operating graphite mine in Madagascar

2016-05-27

May 27, 2016 - Bass Metals Ltd’s share price has increased after completing due diligence to acquire the Graphmada Large Flake Graphite Mine in eastern Madagascar from Stratmin Global Resources.

Unlike 99% 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% 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.

The share price has been on an bull run since June 2015, climbing 266%.