LONDON (Alliance News) - StratMin Global Resources PLC Thursday said Bass Metals has completed due diligence and will go ahead with buying up the remainder of its Graphmada Mauritius subsidiary that it does not already own for up to AUD15.3 million.
As this sale involves StratMin's only significant asset, if the company does not acquire another "sufficiently large asset" ahead of the sale then this would be classified as a "fundamental change of business" under AIM rules. It would then have six months to secure another asset or business, and failing that would have to apply to be readmitted to AIM as an investing company.
StratMin said it has been pursuing a number of opportunities, and is confident it can complete a deal within six months and maintain its admission on AIM.
Bass Metals will buy up the 93.75% stake in Graphmada it does not already own through a cash payment of AUD1.5 million, AUD8.8 million in shares, and a net smelter royalty of 2.5% capped at AUD5.0 beginning six months after the sale.
Shares in Stratmin were up 27% at 2.06 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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