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 granted up to A$7m debt facility for Hellyer Mine Project
Bass Metals (ASX: BSM) has accepted a credit approved offer to extend its debt facilities by up to $7 million to fund exploration and feasibility projects at its Hellyer Mine Project (HMP), if required.
The funds will also be used for additional working capital for the HMP, located in north west Tasmania.
Following the completion of commissioning and ramp-up activities at the HMP at the end of March, 2011 and a technical review by RMB Resources Ltd, Bass accepted the extension.
The new facilities provided by RMB Resources, an experienced mining finance house, increase the company's financial capacity to support unexpected technical issues in the HMP which might arise and the flexibility to increase the level of exploration and feasibility study activity.
The structure of the extended facilities comprises a $5 million working capital facility and a $2 million extension to the existing $12 million project loan facility.
In a statement the company said "the facilities have been offered on terms and conditions which include ongoing technical review, fees and interest charges on similar terms to the original project facility and the issue of up to 7 million options over Bass shares subject to the level of drawings but do not include any requirement for additional hedging."
The company plans to repay the facilities from HMP cash flows, with the extended project facility sheduled to be repaid by 31 March 2012 and the working capital facility by 31 December, 2012.
Bass Metals has recently completed its second milling campaign.
Mike Rosenstreich, managing director, said “the March quarter was all about commissioning and ramp-up, and given the operational results to date, the June quarter is poised to complete that ramp-up process and be largely a full-scale production quarter."
On March 16 Bass Metals received further encouraging drill results at its high-grade polymetallic volcanogenic massive sulphide (VMS) deposits within the HMP.
Progress is being made at three copper-lead-zinc-silver-gold prospects and a new high-grade drilling intercept has confirmed the potential at the Switchback target.
