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Stratmin Global raises £5mln as it brings 'Big Data' to mining exploration

Published: 12:00 05 Jul 2017 BST

picture of Big Data
Applying it to mining will be Tectonic's plan

StratMin Global Resources PLC (LON:STGR) has completed the bulk of the funding it was seeking as part of its reverse takeover of Australian explorer Signature Gold.

Axel Management Group, an Australia-incorporated investment company, has subscribed £5mln out of the £5.72mln target at a price of 2.4p per share.

Signature Gold has a portfolio of early stage assets in Queensland and the Czech Republic and separately today Stratmin agreed to lend it A$500,000 so it can move forward with its exploration. The coupon on the one year loan is 3% with no security.

Stratmin’s managing director Brett Boynton, who is also a director of Signature, said raising the bulk of the money was a significant milestone.

"Signature Gold's existing Australian portfolio and non-binding option to acquire 51% of the Kasperske Hory project in Czech Republic offers an exciting opportunity to generate significant value for shareholders through application of its proven IRGS [large-scale intrusive related gold system]  exploration model.”

Once the reverse takeover is completed, Stratmin will change its name to Tectonic PLC. Existing Stratmin holders will hold a 39% interest in the merged entity pre-completion of the fund raise.

House broker VSA says that Signatures’s area of expertise is to use ‘Big Data’ analytical techniques to identify large mining targets in previously unrecognised areas.

In Queensland, for example, using Signature’s approach has identified ten potential targets in an area that has previously seen exploration failures by some of the world’s largest miners.

Each of the ten has characteristics of a large mining system, said VSA, with the focus now settled on two prospects: Mount Rainbow at Specimen Hill and Day Dawn at Last Chance.

In addition, and because of Signature’s work on redefining the regional geological model and close work with Australian university departments, it qualifies for a capital expenditure rebate of 43.5% from the Australian Federal Government.

In the Czech Republic, Signature/Tectonic has the option to up to a 51% stake in Kasperske, a Czech IRGS system with a JORC 2004 resource of 1.5mln oz. The company has a 10% stake and must pay US$4.9mln for a further 41%.

While Signature/Tectonic does not yet have a compliant JORC resource, VSA anticipates that with the money from the funding these two should generate total compliant and non-compliant resources of around 880,000 ounces, which on a fully diluted basis implies a post money, market capitalisation of £25mln.

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