Shares in StratMin Global Resources Plc (LON:STGR) rose by a third in Friday’s early deals as investors looked forward to the pending completion of a A$15.25mln asset sale.
The company’s Graphmada Mauritius subsidiary is being bought by Bass Metals Ltd (ASX:BSM), which earlier today released an update revealing an anticipated timeline to complete the deal.
Stratmin subsequently confirmed to investors in London that formal completion of the transaction is expected on Monday 22 August, subject to Bass securing shareholder approval at its general meeting.
AIM listed StratMin will receive A$1.5mln by the end of the month, with a further A$8.75mln of Bass equity paid in three staged tranches. It will also receive up to A$5mln from future revenues, via a 2.5% net smelter royalty.
Additionally, StratMin told investors that it has been preparing to initiate funding for its joint venture at the Vatomaina project, where its partner Tirupati Carbons and Chemicals aims to develop a 12,000 ton per annum flake graphite concentrate operation.
The company noted that the Vatomaina project has progressed significantly since the joint venture was first agreed in February 2015, and is now entering development stage.
“Initial funding will be directed to site preparation and drilling for mine planning purposes,” StratMin told investors.
“The joint venture company is already profitably trading third party graphite from Malagasy based producers.”
At around 10:30am, Stratmin shares were up 0.37p, 25%, at 1.88p and had changed hands as high as 2.05p earlier today.