Ann: Bass successfully completes Due Diligence for Graphmada-BSM.AX, page-11

Great news, due diligence successfully completed within 60 days of the announced and respected timeline which bodes well for the next phase (another 60 days, finalization of the agreement and transfer of the graphmada property from stratmin to Bass expected end of july 2016 just after stratmin shareholders vote and payment of first tranche).

The main risk now is the vote of stratmin shareholders. But do they have better alternatives ? stratmin from a financial perspective are running out of time/cash and they need to seal the deal as soon as possible. Its a win-win deal for stratmin and Bass, it would have been impossible for stratmin to acquire themselves the necessary capital to expand and improve graphmada prodcution (capital markets were closed for them due to 3 years delays in achieving breakeven). And at the same time without 100% ownership of Graphmada, Bass wouldnt have been incentivized to invest any capital into the Mine. Its a logical deal after all.

Stratmin shareholders will still haave exposure to graphmada future profitability through both the nice 2.5% royalty (up to 5million$ this shouldnt be underestimated by stratmin shareholders) but also through Bass cheaply acquired shares (750k$ at 0.01$ and then millions of shares at higher market cap of bass through tranches 2 and 3). Any improvement of graphmada profitability/cash flow and thus of Bass market cap will benefit greatly Stratmin shareholders. At the same time STRATMIN WILL NO MORE SPEND ANY WORKING OR INVESTMENT CAPITAL ON GRAPHMADA, paying those 130 graphmada workers will no more be its reesponsability after closure of the deal, stopping any cash drain from the company and allowing it to concentrate its resources on its future endeavours.

This is also good news :
"The Company (Bass) is now seeking to add an experienced CEO and management team to
lead the business and implement Bass’s low capital expansion plans.”

this is a confirmation that Bass are serious in becoming a successful graphite company on ASX, by expanding and improving production of graphmada through capital investment and direct management of the mine. I believe the new appointed CEO/management will keep in place the actual team, especially the now experienced mine manager (wilhelm wiltz) and his co-workers. It is crucial not to disturb operations and improve from here.