Bass Metals Ltd (ASX:BSM) has received commitments to raise $3.3 million from a share placement priced at 1.25 cents.
Funds will be used to find resource drilling and equipment costs at the Graphmada Large Flake Graphite Mine in eastern Madagascar.
The company’s major corporate objective over the next 12 months is the delivery of the stage II upgrade and expansion at the Graphmada mine by early 2020.
Increasing graphite production through stage II
Bass’ CEO Tim McManus said: “The team at Bass is delighted to conclude this strategic placement to allow us to move forward and commence our stage II expansion activities.
“A significant part of the stage II is to build our resource inventory and secure major items of the new plant that are required, without any interruption to the current operations.”
Bass believes the establishment of stage II production volumes of 20,000 tonnes per annum will be a major inflexion point for the company.
Stage II will capitalise on the substantial progress to date at Graphmada with infrastructure established and more importantly significant in-house knowledge of graphite processing.
Operations update from the producing flake graphite mine
Bass noted that mining and processing operations at the Graphmada Large Flake Graphite Mine are continuing to progress well.
The processing plant continues to perform above nameplate capacity and with sales of high value concentrates ramping up, Bass aims to achieve steady state, positive operating cash flow from the mine in early 2019.
Results from the recently completed exploration programs at the Millie’s Reward Lithium Project continue to be processed and the company expects to be able to report the results from the program in January 2019.
Attaching options
Subscribers to the placement will also receive one unlisted option exercisable on or before 31 December 2020 at a price of 5 cents for each two shares issued.