www.bassmetals.com.au
Bass Metals (ASX: BSM) is a growth focused and profitable Australian base and precious metal producer with a portfolio of high quality zinc, lead, copper and gold assets in the rich Mount Read Volcanic mineral belt in northwest Tasmania. Listing in 2005, Bass delivered its maiden profit in 2008 from its profitable base metals production hub at Que River in Tasmania, which has generated $25 million in cash flow over the last two years.
The Company also has an active and successful exploration programme and is currently following up on recent discoveries at Switchback and Fossey East which are high-grade and located in close proximity to existing mines and milling infrastructure. Bass has an experienced Board and operating team who have a strong track record of delivering profitable production underpinned by exploration success and are highly motivated to improve on that record.
The Company’s growth strategy centres on the development of a ‘pipeline’ of production, near-production and exploration assets in this prolific mineral belt, with strong leverage to a substantial new discovery through its extensive regional ground holding.
Bass Metals completes A$12 million financing for Hellyer
Polymetallic miner Bass Metals (ASX:BSM) has completed the $12 million project financing for the Hellyer Mine Project in north-west Tasmania, and the loan facility has been fully drawn.
RMB Resources provided the remaining funding required to complete the HMP development, following:
- Execution of a concentrate marketing and sales agreement with UK based, LN Metals International Ltd for the copper-silver-gold concentrate on favourable terms consistent with revenue outcomes, reported previously;
- Completion of additional technical due diligence by Snowden Mining Industry Consultants; and
- The issue to RMB Resources of 3 million unlisted Bass Metals options with a 3 year term and an exercise price of $0.228.
Earlier in the month Bass completed hedging comprising zinc and lead forward contracts at flat prices of A$2,460/tonne zinc and A$2,410/tonne lead.
The Bass Feasibility Study price assumptions of A$2,241/tonne and A$2,414 respectively, with Bass securing price levels for 13,656 tonnes of zinc and 8,409 tonnes of lead which represents approximately 30% of the payable zinc and lead production from the Fossey Deposit.
The Company’s larger Hellyer Mine Project is on track to commence production toward the end of 2010.
It will have an initial through-put rate of 400,000 tonnes per annum (tpa), the 1.5 million tpa capacity Hellyer Mill will produce 53,000 tpa of zinc concentrate, 27,000 tpa of lead concentrates and 4,500 tpa of copper-silver-gold concentrates.
Bass will also soon generate cash by processing remnant ore from the Hellyer mine.
