Bass Metals nears African graphite business with Tas zinc-lead sale
Monday, October 26, 2015 by Proactive Investors
Bass Metals is pursuing a Tasmanian zinc-lead divestment
Shares in Bass Metals (ASX:BSM) were flying as much as 36% higher today after the company advanced a Tasmanian zinc-lead divestment ahead of a strategic graphite investment.
Bass stock was last trading at A$0.015, being a 650% increase versus a low hit in July.
The company confirmed today that it had entered into a three-month exclusivity period with private company Mancala Resources with the purpose of divesting the Que River assets, which include the Que River mine, access lease and the Mt Block exploration lease.
Mancala will be working to complete its due diligence during the exclusivity period and enter into a binding agreement thereafter.
The Mancala transaction follows Bass’ move last month to take a 25% interest in Stratmin Global Resources’ (AIM:STG) producing Madagascan graphite operations known as Graphmada.
Subject to financing, Bass has an option to increase its interest to 35% in the project, which already boasts a large U.S. offtake customer and is planned for an expansion including two new mines.
Earlier this month, Bass announced that it had received commitments for about A$1 million of funding for the initial Granphmada transaction.
Graphmada’s Loharano mine is 120 kilometres to port on sealed highway, with abundant water on site and a production profile of more than 6,000 tonnes projected in FY2016 – with most output being large and jumbo flake graphite.
As London’s only listed graphite company, Stratmin has invested more than A$16 million in Graphamada to date and is expected to pursue a disciplined expansion strategy at the site.
BSM Price at posting:
1.4¢ Sentiment: Hold Disclosure: Held
