StratMin Global Resources (LON:STGR) has agreed to bring forward the payments due from its Share Purchase Agreement with Bass Metals (BSM AU) into an early discounted cash settlement. Under the agreement BSM equity was due to be issued to STGR in two tranches of A$3m and A$5m subject to certain share price performance criteria. However, with STGR currently identifying possible targets for an RTO and the upcoming dilution overhanging BSM the companies have agreed to strengthen both their positions through early settlement of the deal.
BSM will pay A$2.46m in cash in three tranches, the first of A$955k is to be paid by 16 December 2016, alongside the immediate placement of the entire remaining 70mn shareholding in Bass at a minimum price of A$0.013, equivalent to A$910k. Additionally, STGR has a royalty of 2.5% on BSM and BSM now has the option to buy out that royalty for A$500k prior to 30 June 2018. In total STGR will receive an immediate £1.1m of a total £2.1m with a potential further £296k from the royalty.
STGR had previously agreed a loan facility of US$1.5m using the BSM holding as collateral. However, given the latest announcement this facility, which was undrawn will be terminated. Whilst the company has taken a reduced amount of cash we believe that the upfront cash and simplified payment structure put STGR in a far stronger position ahead of a potential RTO.
StratMin reviewing very high quality opportunities
30 Nov 2016
Chief executive Brett Boynton said Nothing has been decided yet, but we can say that we are reviewing some very high quality opportunities."
The company is required to make a new acquisition if it is to retain its listing on Londons AIM, following the divestment of its main asset in September when it became a shell company.
Management has in recent months focussed on opportunities in the precious metals sector and today the company told investors it has identified a number of interesting prospective projects.
It highlighted the groups management has experience and expertise in gold projects, and that the gold price has improved in the past year. The board is of the opinion that there are significant opportunities for the company in this sector, Stratmin added.
The company also noted there was a possibility that the TMV (or Tirupati Resources Mauritius) flake graphite venture a vehicle it currently has a 1.74% stake in could be opened up to new investment in order to accelerate project development.
It may in turn see a stock market flotation of TRM, as operations at the ventures Vatomaina plant are commissioned.
Stratmin presently retains 1.74% of TRM, and it is agreed that any new investment in the venture would be at a minimum entry price equal to StratMin's existing investment.
The company noted that it still intends to complete a reverse takeover (RTO) acquisition, but, it may revisit the possibility of participating in TRMs Vatomaina project, only after an acquisition is done.
Boynton in a statement said: "The team is conscious of working to complete a suitable transaction in order to maintain the company's admission to trading on AIM.
Nothing has been decided yet, but we can say that we are reviewing some very high quality opportunities.
Opening the TMV project to new investment enables StratMin to focus on the RTO requirement and dedicate cash to that effort."
PLANT REFURBISHMENT COMMENCES IN PARALLEL WITH INCREASED HEAD GRADES AND FIRST SALES
Bass Metals commences plant refurbishment with purchase of two 800kva caterpillar generators to improve processing availability by >30%pa.
Seeking high margin mining blocks, Bass has seen an increase in head grades from 4-5% up to 7-8%.
12,000tpa drying, screening and packaging facility under construction.
Graphmada makes first sales under Bass management.
Wow that is great news !
Directors buying on the open market !
1 million shares acuired on the open market at 1.5c for 15.00$
Now Mr Wright has 14,080,458 Fully paid Ordinary Shares and 8,290,229 Options with an ex price of $0.025c and expire 31/12/2018, acquired through Macquarie River Holdings Pty Ltd (Mr Wright is a director and shareholder of this company).
When directors buy on the open market...well you know what it means !
I agree with you that this is undervalued but the problem is STGR have to take some action to secure their AIM listing and until this is achieved the market will not revalue. What are your thoughts on when this will be achieved?
Bass Metals is paying Stratmin a total bid package in cash, shares and royalties valued at A$16.3 million. Thanks to the improved exchange rate this deal is now valued at £10.2 million ~5.8p.
Bass metals is making great progress towards expansion, has A$7 million in the bank so is fully funded going ahead. Which means Stratmin will receive Bass share package worth A$8 million (tranche 2 and 3) within the next 12-18 months and royalties capped at A$5 million.
Experienced Aussie Graphite investors are loving the Graphmada/Stratmin asset, trading at 1.7c.
Bass/Graphmada will be valued way above $100million imo which bodes well for tranche 2-3.
Furthermore we now know that Stratmin will continue as follow on business via the Tirupati option.
They will be mostly internally funded using the millions of pound worth of Bass shares and bank debt facility for the 12kt Vatamaina project see RNS, which will be operated by our JV Partner Tirupati India. They are graphite experts with 30y experience and have a proven ability to sell every ton they produce.
Spherical graphite : Huge Demand, Lack of Supply, the race is ON
October 12, 2016 Dr Fouad
Graphite demand for lithium-ion battery anodes will increase 3 fold from 80,000 tpa in 2015 to at least 250,000 tpa by the end of 2020 according to benchmark minerals estimates. Its a race to who could service the burgoening spherical graphite market. The demand is there, its growing fast, but there is insufficient and inconsistent supply. As the anode material of choice for lithium ion battery manufacturers, spherical graphite demand ultimate enemy is the availability of supply of the material itself. The huge demand is there and growing fast, but supply is lacking and growing slowly.
The situation is unsustainable, and if suppliers of spherical graphite fail to satisfy the huge demand for natural graphite as an anode material, battery manudacturers will turn to something else, either they will continue using the higher cost but consistent option the synthetic graphite (from petrolum coke), or they will accelerate the development of new anode technologies like silicon (tesla-panasonic are increasing relentlessly the amount of silicon (now only 5%) in their anodes compared to graphite), lithium metal, graphene coated silicon or sulfur based anodes (sony's 2020 new lithium ion batteries) or other new anode technology.
For Sony new anodes that do not recquire graphite to be commercialized by 2020 :
Quote : "The magic bullet is sulfur, apparently. Sonys new batteries are based on a hybrid lithium-sulfur design: they swap the plain negative electrode in lithium-ion batteries for a sulfur-based one, and retain the lithium-based positive electrode. That has allowed the company to dramatically increase energy density up to 1,000Wh/L, or 40 percent larger than your run-of-the-mill, 700Wh/L lithium-ion battery." End of Quote.
For Tesla-Panasonic efforts to use more silicon in their anodes :
Quote : "The cells that contain silicon today including those used in consumer electronics that have been on the market for a few years contain such a small amount that its not really changing the equation. Its a small percentage of the anode material, and the majority of capacity is still coming from the graphite. However, battery-makers clearly intend to find ways to overcome the challenges, and add more silicon. As Musk said in Julys announcement, Tesla expects to increase pack capacity by roughly 5% per year (although not all of those increases will be solely due to adding more silicon)." End of Quote.
For predictions regarding the future demand of spherical graphite by 2020 :
Quote : "Demand for graphite (carbon) used as anode material in lithium ion batteries is set to increase by over 200% in the next four years as global cell production surges on the back of maturing pure electric vehicle demand and the inception of the utility storage market.
New data from Benchmark Mineral Intelligence forecasts the anode market which is nearly exclusively served by naturally sourced spherical graphite and synthetically produced graphite to increase from 80,000 tpa in 2015 to at least 250,000 tpa by the end of 2020 while the market could be as large as 400,000 tpa in the most bullish of cases with no supply restrictions.
Taking the most conservative case, Benchmark estimates that over 360,000 tonnes of medium flake graphite will be needed as a feedstock source for the spherical material by 2020. This is nearly a doubling of the flake concentrate market in 2015 should the natural-to-synthetic demand proportions remain the same in 2020.
At present, China produces 100% of the worlds spherical graphite which is predominately sourced from mi
Looking very good for Tranche 2 IMO. And since Stratmin team are sill running the engineering schedule we are getting to see what Stratmin could have done last year with the finance that Bass got access to.
Stratmin will recreate Lohorano in the JV mine, build on the knowledge they already gained from the last 18 months plus Tirupati's 20+ years experience.
In addition it looks like the expansion concentrator at Lohorano will be 14-18ktpa, not the original 12k - which means Bass Metals will be a bigger producer than we thought, and Stratmin as a shareholder will benefit from both the JV mine and Bass' ongoing success.
Taken from bass bb
Great News ! Amazing progress from management in a very short time since they took over ! Great things to come !
1) Improved recovery rate of mined graphite from 47% to 59% ! (that is an incredible improvement, which will result in lower costs of operations per tonne mined)
"The primary improvement implemented has resulted in a lift in recovery from an average of 47% under Stratmins management, to 59% for feedstock from Loharano. The improved recovery has proven to be stable, without any loss in the average final product grade."
IMO we will see even better recovery rates, once they start controlling scientifically the grade of the ore being mined and feeded to the mill :
"The new Grade Control Drill has been ordered and is in transit to site"
2) Improved ore grade after the primary re-grind mill from 61% to 69% ! this would help further the final grade of graphite after all processing steps have been done. hopefully they could aachieve consistent final grades of 94%+ and maybe surprise us with 95%+ !
3) All these improvements are done BEFORE even the implementation of IMO's suggested improvements.
"We now plan to implement our major improvements on the back of the excellent results we are seeing from IMOs test work, which we hope to announce in the coming weeks.
4) As a bonus : they start the resource update !
"JORC Resource update for Loharano is underway and is on schedule"
Congratulations to Bass Management ! Keep up the amazing work ! And congratulations to Bass sharholders : A multi-bagger in the making !
As investors, we have heard explosive growth stories for Lithium and Graphite from the rising demand for batteries, especially the numerous giga factories planned around the world. There are 12 planned between now and 2020, but most are in Europe and Asia, just two are in the U.S., in Nevada and Michigan.
Currently, over 60% of the demand for lithium and graphite is industrial use, but it is this anticipation of battery demand that gets all the optimistic forecasts and it is deserving.
Currently, lithium is getting all the attention, but when I crunched all the facts and numbers, it is clear the graphite investor should reap higher rewards.
First, some important battery basics
They are called lithium ion batteries not because they are filled with lithium, but it is the powerful reaction of lithium and the movement of the lithium ion that provides the power or electricity.
Inside the battery casing there is 3 basic components.
The Cathode that is typically a Lithium Nickel Cobalt Manganese Oxide. NCM for short and a successful combination is 5 parts nickel, 3 parts cobalt and 2 parts manganese.
The anode that is a graphite carbon that facilitates the absorption of lithium ions. Six Graphite atoms can hold 1 lithium atom, think of this as holding a charge.
And 3rd, the electrolyte that facilitates the movement of the lithium ion between the cathode and anode.
When a battery is used or discharges - the lithium ions move from the anode (graphite) to the cathode (nickel). When you recharge it, basically, you are moving the lithium ions back to the anode.
CEO, Elon Musk of Tesla Motors ( TSLA ) recently commented,
" Our cells should be called Nickel-Graphite, because primarily the cathode is nickel and the anode side is graphite with silicon oxide [there's] a little bit of lithium in there, but it's like the salt on the salad, "
I believe he was down playing the lithium more than warranted.
Musk said that the amount of lithium in a lithium ion battery is about 2% of its total volume
Volume is probably not a good metric because lithium, graphite and nickel are all sold by weight, tons or pounds.
There is actually more nickel and cobalt in these batteries than lithium. Nickel is priced higher than graphite about $10,000 per ton and half the cobalt reserves are in a precarious place, The Congo. For this report, I am going to focus on the lithium and graphite.
Lithium is highly reactive and its ions are bursting to get on the move. I can remember back in Chemistry class, that lithium only had to be exposed to water and would start an explosive reaction immediately.
This is why you have heard of battery fires and there are strict guidelines or restrictions on lithium ion battery shipping. The amount of lithium in a batteryis quite common knowledge because of this. You can refer to some regulations from UPS and their calculation on lithium content.
Just a couple weeks ago, Amazon ( AMZN ) was fined $84,000 for shipping lithium ion batteries by air.
In the U.S. - Cells must not exceed 1.5 g of "equivalent lithium content"; - Batteries must not exceed 8 g of "equivalent lithium content." You may calculate "equivalent lithium content" by multiplying the cell's ampere-hours by 0.3. Since most small batteries are marked with milliampere-hours, you must first divide milliampere-hours by 1,000 before multiplying the result by 0.3
Example: A 2Ah 18650 Li-ion cell has 0.6 grams of lithium content. On a typical 60 Wh laptop battery with 8 cells (4 in series and 2 in parallel), this adds up to 4.8g. To stay under the 8-gram UN limit, the largest battery you can bring on a plane is 96 Wh (and must be in a device).
Tesla's Model S 85 KWH battery is made with thousands of small batteries or ce
Current Cash £300k + £1.2m incoming staged payments in swap for the 75m Bass Shares STGR have been issued
Remaining Incoming royalty payments from Bass Metals: £7.6m expected between now and end 2017.
45% equity share with Tirupati JV in Vatomania Graphite mining licence which is to be a 12000tpa graphite mine to be in full production by Q4 2017. News on this due any time now as per last update.
Pending deals: STGR is required to RTO in the next 5.5month period, it has been reviewing a number of options, one being increasing disclosure on their Tirupati JV which would be straightforward and almost certainly value accretive to STGR shareholders seeing as the MD of Tirupati is a director and significant holder in STGR..
Other opportunities they have been conducting due diligence in include energy storage, advanced graphite processing and other commodities such as gold. I personally think they could be eyeing something that works synergistically with the Tirupati JV such as advanced graphite processing which would allow them to capture huge margin from their 12k tpa mine.
New management have really been hell bent on turning this company around over the past 12 months and as we can see from the past few releases things are starting to come to fruition now.
CEO and Shishir both taking 75% pay cuts and receiving 50% of their £20k salary in shares at a premium (2.5p) going forward.
Graphite is also going to be in huge demand going forward given its used in batteries, more graphite than lithium in batteries so when Tesla start firing up I can see a huge squeeze.
Adding to that STGR is the only London listed Graphite producer.... over in Aus on ASX they command huge premiums hence STGR were able to leverage the sort of deal they have with the Bass shares in return for cash...
Also Cash burn going forward will be much much smaller.
Everything being leaned up.
The historic burn was largely due to unprofitable operations at Graphmada.
By bringing those operations to breakeven STGR were able to maximise the divestment value when selling to Bass and now Bass are responsible for those expenses and the CAPEX, the only costs STGR now have are London overheads.
RNS implies they're actually paying for the privilege too?! Can that be right?
Anyway, can't see how they would want to sell those shares for less than 2.5p, so I would have thought share price should rise to that immediately on the news sinking in, especially given that their new cash salaries could be only £10,000 and the modest rest in shares. I really don't see how any detractors could now claim this is in the category of AIM shares where BOD suck cash from investors, do you? If the shares don't reach, say, 5p in a couple of years, they haven't made anything to speak of.
"Needless to say we are pretty excited with the deal we have done on the Bass shares for US$1.5m. We have effectively swapped a 7% interest in an 8,000 tpa plant for a 45/145 share in a 12,000 tpa plant which has been designed and and is under development by a team that has already done this twice in the past.
In addition, the JV company is also reading graphite from other Madagascar producers and runs at a profit.
We will be looking to do similar deals with the rest of the Bass shares as we receive them."
So, now we know how StratMin will finance its investment commitments to the 12,000 tpa large-flake graphite project in Madagascar
StratMin shares shot up on news of the loan
It should be full-steam ahead for the Vatomaina graphite project in Madagascar after joint-venture participant StratMin Global Resources PLC (LON:STGR) announced a novel fund-raising.
The company has arranged a US$1.5 million non-recourse loan facility secured against its holding of 75mln Bass Metals Limited (ASX:BSM) shares, prompting a 22% leap in the shares to 1.83p.
Working with a corporate investor that is an existing stakeholder in Bass, StratMin has agreed to assign security and voting rights over its entire Bass holding to the lender, in return for a 12-month non-recourse loan facility. The loan will be repaid in some or all of the Bass shares, with no cash amounts payable, and no interest payments.
StratMin became the largest shareholder in Australian Stock Exchange-listed Bass Metals Ltd after it sold its Graphmada investment to the Aussie firm.
The loan will be used to fund StratMin's investment commitment to the Tirupati Resources Mauritius (TRM) joint venture and for general working capital.
TRM owns the Vatomaina project in Madagascar, a 12,000 ton per annum large-flake graphite project, currently being developed by Tirupati Carbons and Chemicals Pvt Ltd.
The redemption amount of the loan is set at 120% of the amount drawn down referred to as the basic redemption value - plus 50% of the value of the Bass shares in excess of the basic redemption value,
"By working with existing Bass stakeholders and leveraging the value of the voting block held by the company, we were able to secure funding on terms well in excess of the open market value of the Bass share holding, said Brett Boynton, chief executive officer.
This facility gives us capacity to fully fund our commitment to our joint venture partner without any delay to the planned development of the Vatomaina project. Now that Vatomaina is funded, we will work with Tirupati to release a detailed project review and update for shareholders within the week," he added.
Seems like progress is happening to schedule. And the Technical Director of Stratmin is very motivated to make the now Bass project work for both sides. It feels like two years were lost, but that a year from now, PIs might be wondering why they didn't buy into a decent business. A properly funded Loharano should be bringing $ms of value to Stratmin, and Stratmin will have at least as much value visible in Vatomaina, so twice the scale, which should be valued at 5-6p.
- Is now partnering with proven experts in graphite mining engineering and distribution (Tirupati)
- Has a relatively new BOD hungry for success here
- Sold its previous asset to BSM for GBP8m in cash and equity
- Secured funding for next venture from part of the BSM equity
- HAS YEARS OF LOCAL EXPERIENCE IN MADAGASCAR
- Will leverage that experience to get the new JV mine up and running - they now have the dream team to achieve that.
We will get a comprehensive report out on Vatomaina in a couple of days.
It is a great project and now have it funded.
There is a possibility with the Vatomaina deal now funded they can re approach AIM and have that as their qualifying asset, then we expand when we get the next Bass monies in.
"By working with existing Bass stakeholders and leveraging the value of the voting block held by the Company, we were able to secure funding on terms well in excess of the open market value of the Bass shareholding. This facility gives us capacity to fully fund our commitment to our joint venture partner without any delay to the planned development of the Vatomaina project.
Now that Vatomaina is funded, we will work with Tirupati to release a detailed project review and update for shareholders within the week."
There are many ways to hype investor enthusiasm for early stage companies and at the top of the list is the attribution the company is poised to cash in on the next big thing.
Technologies or new products that qualify as having next big thing characteristics are those with the potential for having a major impact on the way the world works. Investment advisory firms frequently earmark a technological breakthrough as having potential impact of biblical proportions. Here is an example, from LarrainVial, a major South American firm based in Chile with substantial operations in the US, on the impact potential of graphene.
The attributes of graphene transparency, density, electric and thermal conductivity, elasticity, flexibility, hardness resistance and capacity to generate chemical reactions with other substances harbour the potential to unleash a new technological revolution of more magnificent proportions than that ushered in by electricity in the 19th century and the rise of the internet in the 1990s.
A few years back investors bought the hype and flocked to stocks set to benefit from what many were calling the new black gold graphene. This is a relatively new material, tracing its origins back to 2004 when two researchers at the University of Manchester -- Andre Geim and Konstantin Novoselov, were able to create it from graphite. Exactly what is it? Here is a definition, suitable for technophiles, from the website gigaom.com:
Graphene is made of a single layer of carbon atoms that are bonded together in a repeating pattern of hexagons. Graphene is one million times thinner than paper; so thin that it is actually considered two dimensional.
For investors the relevant issue is what this material can do, not how it is made. The possibilities are tantalizing, to say the least. Graphene-based solar panels and a graphene based replacement for silicon chips are two undergoing research, but the application generating the most buzz is the use of graphene in battery technology.
The lithium-ion battery is the current technology of choice, and graphite is a major component along with lithium and cobalt. Demand for graphite is expected to increase 200% over the next four years, according to Benchmark Mineral Intelligence, a data collection firm.
However, as investors revved up their engines and climbed aboard the graphite miners, the fact current demand for graphite came primarily from steel production may have been overlooked. As the steel demand dropped so did the price of graphite, as seen in the following graph.
This may explain in part the decline of one of hottest graphite explorers on the ASX in 2012, Kibaran Resources (KNL). Kibaran is an exploration stage company with its flagship project in Tanzania, Africa. Not all graphite is created equal and the companys Epanko site is expected to be a source of high quality large flake graphite. The stock price rocketed upward in June of 2012 on positive results from the Tanzanian site, collapsed by year end, lingered for a year before rising and collapsing again. The rocket ride was also fueled by the companys venture into a joint venture company, 3D Graphtec, to explore graphene applications in 3D printing. That venture went nowhere and the newly named 3D Grapthec (333D Pty Ltd) is being acquired by Oz Brewing and will go public under the symbol T3D. The company began as 3D Group before the deal with Kibaran at a time when 3D Printing was being hailed as a next big thing. Such is the path of many early stage companies in search of the often elusive next big thing. Here is the price movement chart for KNL.
While investor impatience coupled with lower graphite prices can lead to wildly volatile moves in stocks like KNL, the forecasted demand for graphite remains high, as does the potential for applications for graphene.
Demand for lithium batteries for EV (Electric Vehicle) use i
EV boom requires ready graphite supply
20th Sep 2016 BNN.ca
International automakers are laser-focused on increasing their penetration into the electric vehicle (EV) market. But they all face one potential supply chain roadblock: China controls not only most of the worlds graphite, used to make lithium-ion batteries, but much of the battery production infrastructure as well.
Lithium-ion batteries for EVs require not only lithium but also two electrodes a cathode, usually made with metals such as nickel and cobalt, and a graphite anode. If North American automakers want to ensure an uninterrupted supply of lithium-ion batteries, theyll have to develop a domestic graphite supply chain, says Jack Lifton, founding principal of U.S.-based Technology Metals Research LLC and an expert on the market fundamentals of technology metals.
The Chinese have the total supply chain, says Lifton. Theyre producing most of the lithium-ion battery electrodes and are really dominating this space. With this burgeoning thrust in electric vehicles by major nations, wed better start thinking about graphite to make anodes, because you cant make a ladder with only one rung.
To accommodate all of the EV battery demand, the worlds flake graphite output needs to expand exponentially, says Jamie Deith, president of Eagle Graphite. With so much of it coming from China already, the world in general and automakers in particular need to come to grips with the problem.
A recent report from Benchmark Mineral Intelligence reveals that China currently produces 100 per cent of the worlds spherical graphite a purified grade valued in the production of battery anodes. Benchmark also forecasts that demand for graphite used as anode material in lithium-ion batteries will increase by more than 200 per cent in the next four years to satisfy the twin demands of the electric vehicle industry and the utility storage market.
China has previously flexed its economic muscle along the high-tech supply chain, dropping rare earth export quotas significantly in 2010 and causing international prices to soar. The country only dropped those quotas following a World Trade Organization ruling in 2015.
While eyes are currently focused on Chinas international ambitions in the South China Sea, Lifton notes that it wont require a high-profile diplomatic incident to trigger further supply disruptions for North American EV manufacturers.
The Chinese are now gearing up to make most of the worlds electric vehicles, he says. They want to build five million of these things by 2020, so theyll be needing their own specialty graphites. I wouldnt depend on Chinese suppliers to supply North America at the expense of their own EV industry. These suppliers are more likely to tell you that theyre sorry, but First Automotive of Shanghai has all of their production. Thats whats got North American auto producers who are ramping up electric car production worried.
In a recent report, Goldman Sachs predicts that by 2025, 25 per cent of cars sold, including hybrids, will have electric engines, up from five per cent today. Tesla alone plans to build 500,000 cars per year by the end of the decade. Its Gigafactory in Nevada aims to produce more lithium-ion batteries in the U.S. by 2020 than were produced worldwide in 2013. With such increased market demands, Deith says the North American EV industry needs to secure alternative graphite sources sooner rather than later to assure supply.
The cost of a small cellphone or laptop battery wont be affected significantly by inefficiencies in the supply chain between graphite extraction and producing battery anodes, says Deith. The market wont worry too much about the supply chain if a battery costs an additional 50 cents for a $500 laptop. But when you scale up the volume, a Tesla requires something like the equivalent of 7,000 laptop batteries. If supply chains add $3,500 to the cost of a $35,000 car, you start c
Bass Transaction Completion and Tranche One Settlement
StratMin Global Resources Plc (AIM: STGR) is pleased to announce completion of the divestment of Graphmada Mauritius ("Graphmada") to Bass Metals Ltd ("Bass") (the "Divestment") with execution of a final Settlement Deed and the receipt of the A$600,000 balance of the A$1.5 million Tranche One cash payment expected to clear international banking in the next twenty four hours. Coupled with the issuance of 75 million Bass Ordinary Shares to the Company, which occurred on 2 September 2016, this completes Tranche One of the Divestment consideration.
As previously announced, further consideration of up to A$8,000,000 in Bass Ordinary Shares is to be paid to Stratmin subject to the operations of Graphmada meeting certain production milestones. In addition, a quarterly net smelter royalty payment from Bass of 2.5 per cent, capped at A$5,000,000, will begin in six months.
The Company has also agreed to assist Bass in the recovery of a VAT credit for Graphmada S.A.R.L. in return for an equal share in the balance recovered. The VAT credit at Graphmada S.A.R.L. as at the date of this agreement is GBP486,502, generating a potential further payment from Bass of up to GBP243,251 from this transaction.
As previously advised, the Board has been actively pursuing a number of corporate opportunities and is confident that it will be able to complete a transaction within six months of completion of the Divestment which provides the Company with the necessary compliance to maintain the trading of its ordinary shares on AIM. Failing this, the Company's ordinary shares will be suspended from trading on AIM.
Brett Boynton, Executive Chairman, Commented:
"We are very pleased to have this first phase of the divestment successfully completed. As the largest shareholder in Bass, StratMin is well positioned to benefit from their fully funded expansion program and we are constantly looking at ways to maximize the value of this investment. Partnering on the recovery of the VAT is one of the many ways we will be leveraging our in-country and industry expertise to help Bass."
Interestingly laid out, but I think the missing part is that, when Li-ion gets towards $100/kWh, the demand for domestic storage of electricity will take off. In equatorial countries with less than perfect power grids, this is a no-brainer add-on to solar power at the right. I'd love to see more forecasts of this, as it would add that extra bump to graphite demand quickly.
StratMin Global Resources Plc (AIM: STGR), notes that Bass Metals Ltd ("Bass") has advised the Company that the capital raise to fund the purchase of Graphmada and expansion of the mine and plant at Loharano has been successful, with the final retail component of the rights issue and placement now completed.
1. Initial funds totalling in excess of £325,000 have been remitted from Bass and received by StratMin.
2. The balance of the A$1.5 million cash settlement is to be funded from placement proceeds and is expected to clear international banking in the next week.
3. The first 75 million Bass ordinary shares due to Stratmin is expected to be received within the next week.
4. Further consideration of up to A$8,000,000 in Bass ordinary shares to be paid to Stratmin subject to Graphmada meeting certain production milestones.
5. A net smelter royalty payment from Bass of 2.5 per cent, capped at A$5,000,000, will begin in six months.
In on-going operations, Stratmin has now finalised and agreed the development budget with Tirupati for the 12,000 tpa Vatomaina flake graphite. Initiation of funding is expected within the next 15 days
Graphite Market: Demand From Refractories Will Continue to Remain Strong
VALLEY COTTAGE, New York, August 18, 2016 /PRNewswire/ --
Global sales of graphite is estimated to be valued at US$ 14,690 Mn by the end of 2016, witnessing a Y-o-Y growth of 9.0% over 2015. Asia Pacific excluding Japan (APEJ) will continue to remain a key region, with its revenue share of the global market expected to be 35.5% in 2016.
Demand for lithium-ion batteries in electric vehicles and other electronic devices is expected to significantly drive growth of the graphite market in 2016 and beyond. Rising energy demand across the globe is driving installation of various novel energy production sources such as nuclear pebble bed reactors. Graphite is used an electrode in such reactors.
On the basis of product type, synthetic graphite segment will continue to find favour among end-use industries. This is mainly attributed to its high demand and relatively high cost as compared to natural graphite. Slowdown of mining activities in China is anticipated to drastically lower production of natural graphite. This in turn is expected is expected to drive demand for synthetic graphite in the long run. Vein graphite sub-segment is anticipated to expand at a CAGR of 6.3% in terms of volume over the forecast period. Vein graphite is available in Sri Lanka and increasing mining in this country is expected to witness significant growth of this sub-segment during the forecast period.
On the basis of application, refractories segment is anticipated to dominate the market in terms of value and volume. This segment is expected to account for 42.2% volume share in 2015. Batteries segment is anticipated to witness robust growth in terms of value and volume over the forecast period. In terms of volume, the batteries segment was pegged at 134,400 tonnes in 2015.
North America and Western Europe are estimated to collectively account for 22% value share in the global graphite market by the end of 2016. The commencement of gigafactory of Tesla Motors Inc. in 2017 for production of electric cars is in turn expected to significantly increase demand for graphite. In 2015, China was the largest producer of graphite, accounting for over 70% share of global production.
Key players in the global graphite market include SGL Carbon SE, Showa Denko K.K., AMG Advanced Metallurgical Group N.V., Graphite India Limited, Toyo Tanso Co., Ltd., SEC Carbon Ltd., Tokai Carbon Co., Ltd., HEG Ltd., GrafTech International Limited.
Long-term Outlook: The long-term outlook on the global graphite market remains positive, with market value expected to increase at a CAGR of 11.1% during the forecast period. Among product types, synthetic graphite segment is expected to expand at a significant CAGR in terms of value over the forecast period. Among applications, batteries segment is anticipated to witness highest CAGR in terms of value over the forecast period.
StratMin Global Resources PLC (LON:STGR) has disposed of its Graphmada business in Mauritius after the acquisition was agreed on Monday.
Acquirer Bass Metals Ltd (ASX:BSM) will make an initial payment of A$1.5mln in cash by the end of the month. The remainder of the A$15.25mln will be met through shares and a net smelter royalty.
Brett Boynton, chief executive, tells Proactive Investors '' through the sale we have ended up with an equity position which will enable us to pursue our joint venture with our technical partner Tirupati on another Graphite project about 20 km away from the existing operation.''
''Our focus will immediately switch, from an operational point of view, to the development of the Vatomaina asset'', he adds.
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