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 updates market on second tranche of its fundraising initiatives
Bass Metals (ASX: BSM) is currently suspended as the company moves towards the tranche two objective to raise $20 million, which is in addition to the initial tranche of $4.3 million completed earlier in the month.
Bass said that the company is in discussions with a number of equity providers to raise new equity by way of a proposed entitlements issue to existing Bass shareholders.
Separately, RMB Resources Limited today signed a mandate to arrange an increase in the existing Corporate Loan Facility by up to $13 million, subject to RMB Resources credit approval and finalisation of due diligence.
Bass has outlined the potential funds from the second tranche are planned to be allocated to; manage a short-term working capital requirement largely associated with the Hellyer Mine Project; maintain an appropriate working capital position; and to provide adequate funding to sustain a large scale exploration program and gold tailings feasibility study.
Bass anticipates being able to provide a definitive update on the structure and timing of these fundraising initiatives on or before 31 August, 2011.
The board’s intention is to keep the company’s shares suspended, due to a view that reinstatement of trading may materially prejudice the ability to successfully complete the second tranche of financing.
