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 temporary suspension pending financing transaction for Hellyer
Polymetallic producer and explorer Bass Metals (ASX: BSM) has been granted a temporary suspension by the ASX pending 'completion of a financing transaction to support the updated operating plans for the Hellyer mine project.'
Bass has indicated the temporary suspension of the company’s securities is anticipated to be for three to four weeks, with the company in advanced discussions with several parties with the objective of raising around $25 million, largely through a convertible debt structure.
Commensurate with this the operations team is updating the HMP mine plan to generate a robust high-grade mine plan to be incorporated in its cash flow forecasts, which is also being scrutinised by independent technical consultants.
Mike Rosenstreich, managing director, earlier in the week said when the company requested a trading halt, “The company needs to recapitalise to be able to reposition itself from the unforeseen technical issues only recently encountered revolving around water inflows and ore grades.
"The newly updated operating plan appears robust and it is anticipated to provide a strong platform from which to aggressively develop our existing assets and to rebuild shareholder value eroded over the past few months.”
The funds raised, subject to successful completion of the refinancing, are planned to be deployed toward:
- Upgrading mine services such as dewatering infrastructure and funding production delays and shortfalls incurred through the June 2011 quarter (around $8 million);
- Exploration work to evaluate existing resources and generate new targets as well as completion of the Gold Recovery Feasibility study (around $6.5 million); and
- Provide a minimum cash buffer of approximately 2 months working capital (around $9 million).
