Bass Metals and StratMin Enter Farm-in Agreement

Mining Weekly reported that Bass Metals Ltd. (ASX:BSM) is set to acquire a 35-percent stake in StratMin Global Resources plc’s (LSE:STGR) Madagascar-based Loharno mine. The companies have arranged a farm-in agreement.
As quoted in the market news:

The Australian company would acquire a 25% stake in StratMin’s wholly owned subsidiary Graphmada Mauritius, which held the Loharano mine, for an initial investment of £2-million.
Subject to the successful completion of the initial investment by November 30, Bass would have the right to acquire, at its sole discretion, a further 10% interest in Graphmada Mauritius prior to December 31, at a price to be determined by reference to the share price of StratMin at the time of the election to exercise the option.
The collaboration with Bass would provide StratMin with a cost-effective mechanism to access the sophisticated graphite investor base in Australia.

Brett Boynton, CEO of StratMin, commented:

This transaction reduces the funding risk going forward for StratMin by giving it access to a large and active graphite investor pool and gives the company the confidence to look at more significant transactions going forward.
We have an opportunity now to capitalise on the early mover status StratMin has gained and, while most of our peers are focused on completing feasibility studies and cost cutting, together with Bass, we can work on expanding production from Loharano and developing new opportunities.

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