Shares in Stratmin Global Resources PLC (LON:STGR) gained almost 30% after the AIM-listed firm announced it had completed the divestment of Graphmada Mauritius.
Stratmin said it had executed a final settlement deed and should receive the final A$600,000 of the A$1.5mln tranche one cash payment from Bass Metals Ltd within the next 24 hours.
Once the payment clears, and coupled with the 75mln Bass shares issued at the start of the month, it said tranche one of the divestment consideration would be completed.
"We are very pleased to have this first phase of the divestment successfully completed,” said executive chairman Brett Boynton.
“As the largest shareholder in Bass, Stratmin is well positioned to benefit from their fully funded expansion program and we are constantly looking at ways to maximize the value of this investment.”
Bass will pay Stratmin up to a further A$8mln in Bass shares subject to operations at Graphmada hitting certain milestones.
On top of that, Stratmin will receive a quarterly net smelter royalty payment of 2.5%, capped at A$5mln, which will begin in six months.
The company also said that it will help Bass recover some VAT for Graphmada in return for an equal share of the balance recovered, which stands at around £243,000.
Stratmin told investors it has been “actively pursuing” a number of acquisition opportunities recently and expects that it will be able to compete a transaction within six months of the divestment’s completion.
The company added that failing to do this would lead to its shares being suspended from trading on AIM.
Shares were up 29%, or 0.6p, to 2.2p.