Graphite miner StratMin Global Resources (LON:STGR) has given Bass Metals an option to buy a larger stake in its Loharano mine in Madagascar.
Bass has already agreed to pay £2mln for a 25% stake but under a tweak to the terms of an additional option agreement the ASX-listed group can take a further 15% (against 10% previously) if it pays within the new schedule.
So far, Stratmin has received £278,000 of the £2mln but Bass has committed to pay all of a first tranche of £500,000 by 31 December and the second tranche of £1.5mln by 31 March.
Bass will own 6.25% of Graphmada Mauritius, the Stratmin subsidiary that owns the mine, with the first tranche and 25% after the second.
The option can take that stake up to 40% with the cost based on Stratmin’s share price when it is exercised.
Bass recently settled a legal action with Singapore-listed LionGold Corp that has given it A$2.5mln to finance the Graphmada stake.
Stratmin shares fell 6% to 3.52p.