StratMin, Tirupati Sign Binding Strategic Partnership and Joint Venture Agreement

StratMin Global Resources plc (LSE:STGR) announced that it’s signed a binding strategic partnership and joint venture agreement with Tirupati Carbons & Chemicals Group (P) Ltd., a private India-based graphite mining and processing group. Tirupati has operations in both India and Madagascar.

Highlights of the agreement include:

• Stratmin to earn a 45% interest in Tirupati’s subsidiary, Tirupati Resources Mauritius Pvt Ltd, which owns 98% of Tirupati Madagascar Ventures SARL (‘TMV’), owner of the Vatomaina graphite project in Madagascar (‘Vatomaina Project’), via a staged investment of US$1.5m.
• Highly experienced Tirupati founder and Managing Director, Mr Shishir Poddar joins the Board of Stratmin in an executive capacity as Technical Director.
• Stratmin and Tirupati to jointly fund a 12,000 tpa graphite mine and processing facility for the Vatomaina Project.
• Stratmin to develop a second, 100% owned, 12,000 tpa facility adjacent to existing operations at Loharano (‘Mahefadok Project’).
• Tirupati to provide technical expertise and collaborate on marketing and sales.
• Tirupati to make staged investment into Stramin via equity options structure.
• Strategic partnership to deliver significant synergies for Stratmin and Tirupati, leveraging Stratmin’s existing in country infrastructure and Tirupati’s extensive graphite expertise.

The press release also states:

Stratmin has agreed to invest US$1.5m in the Vatomaina Project in return for a 45% equity interest in Tirupati Resources Mauritius Pvt Ltd, the holding company of the Vatomaina Project via its 98% interest in TMV (the other 2% being held by Shashir and Hermant Podder), having been assigned these rights from Consolidated Chrome Pte Ltd, a company controlled by Mr Ghanshyam Champaklal, a significant shareholder in Stratmin. The funds will be used to complete a feasibility study on the project and to commence site preparation. It is estimated that a further US$4m will be required to construct a 12,000 tonne per annum processing plant for TMV and a similar amount for an additional 12,000 tonne per annum mine and processing plant at Stratmin’s Mahefadok Project.

Stratmin and Tirupati will centralise operations in Madagascar to maximise synergies between their respective projects. All operational reporting will be to Mr Shishir Poddar.

Tirupati will earn up to £300,000 in equity as compensation for technical services, payable in Stratmin shares in three equal instalments, £100,000 payable at 5.07p, the volume weighted average price for the 5 days prior to signing the agreement and the remainder at the volume weighted average price from time to time, subject to agreed milestone achievements. In order to further align Stratmin and Tirupati’s long-term interests, Tirupati will invest, via an option package, of 5million Stratmin shares at a pricing of 6p per share and 5 million Stratmin shares at 9p per share, exercisable over a 12 month period and an 18 month period respectively.

Click here to read the full StratMin Global Resources plc (LSE:STGR) press release.